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Home My WebLink AboutHood Canal Salmon Enhancement Group • ittTh •o, fit 900 �- (,(r JEFFERSON COUNTY CONSERVATION FUTURES PROGRAM PROJECT GRANT AGREEMENT Project Sponsor: Hood Canal Salmon Enhancement Group (UBI Number 601-285-471) Project Title: Big Quilcene River—Moon Valley Acquisitions Contract Number: EH-22-025 Approval: Resolution No. 51 —21 amended by Resolution No. 36—22 1. Parties to this Agreement This Jefferson County Conservation Futures Program Project Grant Agreement (this Agreement) is entered into between Jefferson County (County), PO Box 1220, Port Townsend, Washington 98368 and Hood Canal Salmon Enhancement Group (Sponsor), P.O. BOX 2169, Belfair, WA 99528. 2. Purpose of this Agreement This Agreement sets out the terms and conditions by which a grant is made through the Jefferson County Conservation Futures Fund, Chapter 3.08 of the Jefferson County Code (JCC), as cc approved by Resolution No. 51 —21 and amended by Resolution No. 36—22. 3. Grant Administration The grant is administered by Jefferson County Public Health Department on behalf of the project q-) Sponsor. 4. Description of Project The subject project is described in the Scope of Work (Appendix A). 5. Project Requirements Hood Canal Salmon Enhancement Group shall implement a Conservation Futures Program project to acquire in fee simple title (Exhibit A) a portion of the property known in the records of the Jefferson County Assessor as APN# 702 233 001 and now included in APN# 702 233 006 as approved on September 2, 2022 by Jefferson County Department of Community Development as AFN#s 656298 and 656299 (Exhibit B) and originally described in the 2021 Conservation Futures project application for the Big Quilcene River — Moon Valley Acquisitions Project (Exhibit C) and 2021 Conservation Futures Program Manual (Exhibit D), and as authorized by Resolutions Nos. 51 — 21 and 36 — 22 (Exhibit E). The statutory warranty deed shall prevent subdivision while allowing for native forest management and habitat protections, or as described in the project application. Language must be included in the statutory warranty deed to protect the County's interests and conservation values, including, at a minimum, the following: Grantee's costs of acquiring the Property were provided in part by grant funding from the Jefferson County Conservation Futures property tax authorized by Washington law. Grantee hereby agrees to be bound by Jefferson County Code (JCC) 3.08.030(9), the uses authorized under RCW 84.34.230, including the Big Quilcene River—Moon Valley Acquisitions 1 October 5, 2022 EH-22-025 obligation to ensure the long-term conservation of the Property in accordance with the terms and conditions of the statutory warranty deed, and to obtain the consent of Jefferson County prior to any conveyance of any interest acquired hereby. Consistent with JCC 3.08.030(9), the Property shall not be converted to a different use unless and only if other equivalent lands or interest in lands within Jefferson County are received by Grantee in exchange. 6. Period of Performance The Project reimbursement period for acquisition expenses shall begin on September 7, 2021 and end on September 7, 2024 unless proof of match is provided prior to this date. Work performed consistent with this Agreement during its term, but prior to the adoption of this Agreement, is hereby ratified. 7. Annual Reporting Required. Annual reporting by the Sponsor to the County is required every year on or before December 31 Sc until three years after the acquisition funds are dispersed. 8. Project Funding The total grant award provided by the Conservation Futures Fund for the Project shall not exceed $89,500. The Conservation Futures Fund shall not pay any amount beyond that approved in this Agreement for funding of the Project. The Sponsor shall be responsible for no less than ninety- six (96%) percent of the total Project cost and all Project costs in excess of $560,000. The contribution by the Sponsor toward work on the Project shall be as indicated below. The contribution by the Conservation Futures Fund toward work on the Project is described immediately above and in"C" above. Acquisition 0 & M Totals Est. % Match Big Quilcene $89,500 $0 $89,500 34 River—Moon Valley Acquisitions Conservation Futures Estimated $173,140 $0 $173,140 66 Project Sponsor Contribution Estimated Total $262,640 $0 $262,640 100% Project Cost 9. Unexpended Project Allocations Should unexpected Project allocations, including (but not limited to) project completion at less than the estimated cost or (alternatively) the abandonment of the Project occur, then the Sponsor shall notify the County within 30 days. Big Quilcene River—Moon Valley Acq. 2 October 5, 2022 10. Modification of this Agreement All rights and obligations of the parties to this Agreement are subject to this Agreement and its attachments. Except as provided in this Agreement, no alteration of any of the terms or conditions of this Agreement shall be effective unless provided in writing. All such alterations, except those concerning the period of performance, must be signed by both parties. Period of performance extensions need only be signed by Jefferson Board of County Commissioners. 11. Indemnification The Contractor shall defend, indemnify and hold the County, its officers, officials, employees, agents and volunteers (and their marital communities) harmless from any claims, injuries, damages, losses or suits, including attorney's fees, arising out of or resulting from the acts, errors or omissions of the Contractor in performance of this Agreement, except for injuries and damages caused by the sole negligence of the County. Should a court of competent jurisdiction determine this Agreement is subject to RCW 4.24.115 if liability for damages occurs arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Contractor and the County, its officers, officials, employees, agents and volunteers (and their marital communities) the Contractor's liability, including the duty and cost to defend, shall be only for the Contractor's negligence. It is further specifically understood that the indemnification provided constitutes the Contractor's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. This section shall survive the expiration or termination of this Agreement. 12. Insurance The Sponsor shall secure and maintain in force throughout the duration of this Agreement policies of insurance as follows: Workers Compensation Insurance. If and only if the Sponsor employs any person(s) in the status of employee or employees separate from or in addition to any equity owners, sole proprietor, partners, owners or shareholders of the Sponsor, Worker's Compensation Insurance in an amount or amounts that are not less than the required statutory minimum(s) as established by the State of Washington or the state or province where the Sponsor is located. Commercial Automobile Liability Insurance providing bodily injury and property damage liability coverage for all owned and non-owned vehicles assigned to or used in the performance of the work for a combined single limit of not less than $500,000 each occurrence with the County named as an additional insured in connection with the Sponsor's performance of the contract. General Commercial Liability Insurance in an amount not less than a single limit of one million dollars ($1,000,000) per occurrence and an aggregate of not less than two (2) times the occurrence amount ($2,000,000.00 minimum) for bodily injury, including death and property Big Quilcene River—Moon Valley Acq. 3 October 5, 2022 damage, unless a greater amount is specified in the contract specifications. The insurance coverage shall contain no limitations on the scope of the protection provided and include the following minimum coverage: a. Broad Form Property Damage, with no employee exclusion; b. Personal Injury Liability, including extended bodily injury; c. Broad Form Contractual/Commercial Liability—including completed operations; d. Premises—Operations Liability (M&C); e. Independent Contractors and subcontractors; f. Blanket Contractual Liability. Such insurance coverage shall be evidenced by one of the following methods: * Certificate of Insurance; * Self-insurance through an irrevocable Letter of Credit from a qualified financial institution. The County shall be named as an additional insured party under this policy. Certificates of coverage as required by this section shall be delivered to the County within fifteen (15) days of execution of this Agreement. Any deductibles or self-insured retention shall be declared to and approved by the County prior to the approval of the contract by the County. At the option of the County, the insurer shall reduce or eliminate deductibles or self-insured retention or the Sponsor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. The Sponsor shall include all subcontractors as insured under its insurance policies or shall furnish separate certificates and endorsements for each subcontractor. All insurance provisions for subcontractors shall be subject to all of the requirements stated in this Agreement. Failure of the Sponsor to take out or maintain any required insurance shall not relieve the Sponsor from any liability under this Agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations concerning indemnification. It is agreed by the parties that insurers shall have no right of recovery or subrogation against the County (including its employees and other agents and agencies), it being the intention of the parties that the insurance policies so affected shall protect both parties and be primary coverage for any and all losses covered by the above described insurance. It is further agreed by the parties that insurance companies issuing the policy or policies shall have no recourse against the County (including its employees and other agents and agencies) for payment of any premiums or Big Quilcene River—Moon Valley Acq. 4 October 5, 2022 for assessments under any form of policy. It is further agreed by the parties that any and all deductibles in the above described insurance policies shall be assumed by and be at the sole risk of the Sponsor. It is agreed by the parties that judgments for which the County may be liable, in excess of insured amounts provided in this Agreement, or any portion thereof, may be withheld from payment due, or to become due, to the Sponsor until such time as the Sponsor shall furnish additional security covering such judgment as may be determined by the County. The County reserves the right to request additional insurance on an individual basis for extra hazardous contracts and specific service agreements. Any coverage for third party liability claims provided to the County by a "Risk Pool" created pursuant to Ch. 48.62 RCW shall be non-contributory with respect to any policy of insurance the Sponsor must provide in order to comply with this Agreement. If the proof of insurance or certificate indicating the County is an"additional insured"to a policy obtained by the Sponsor refers to an endorsement (by number or name) but does not provide the full text of that endorsement, then it shall be the obligation of the Sponsor to obtain the full text of that endorsement and forward that full text to the County. The County may, upon the Sponsor's failure to comply with all provisions of this Agreement relating to insurance, withhold payment or compensation that would otherwise be due to the Sponsor. For the avoidance of doubt, the obligations in this section shall survive the expiration or termination of this Agreement. 13. Independent Contractor The Sponsor is an independent contractor with respect to the services provided pursuant to this Agreement. The Sponsor is not as an agent, an employee or a servant of the County. Nothing in this Agreement shall be considered to create the relationship of employer and employee between the parties. The Sponsor specifically has the right to direct and control Contractor's own activities and over all of its subcontractors, employees, agents and representatives in providing the agreed services in accordance with the specifications set out in this Agreement. Neither Sponsor nor any employee of Sponsor shall be entitled to any benefits accorded County employees by virtue of the services provided under this Agreement. The County shall not be responsible for withholding or otherwise deducting federal income tax or social security or for contributing to the state industrial insurance program, otherwise assuming the duties of an employer with respect to Sponsor, or any employee of Sponsor. The Sponsor agrees to file all necessary governmental documents, including appropriate tax returns, reflecting income status as an independent contractor for services rendered to the County under this Agreement. 14. No Assignment The Sponsor shall not sublet or assign any of the services covered by this Agreement without the express written consent of the County or its authorized representative. Assignment does not Big Quilcene River—Moon Valley Acq. 5 October 5, 2022 include printing or other customary reimbursable expenses that may be provided in an agreement. 15. Ownership and Use of Documents All documents, drawings, specifications and other materials produced by the Sponsor in connection with the services rendered under this Agreement shall be the property of the Sponsor whether the project for which they are made is executed or not. The County shall be permitted to retain copies, including reproducible copies, of drawings and specifications for information, reference, and use in connection with the Sponsor's endeavors. 16. Compliance with Applicable Statutes, Rules, and Jefferson County Policies This Agreement is governed by, and the Sponsor shall comply with, all applicable state and federal laws and regulations, including RCW 84.34.210, and published agency policies, which are incorporated into this Agreement by this reference as if fully set forth. 17. No Harassment of Discrimination Any form of harassment, discrimination, or improper fraternization with any County employee is strictly prohibited. The Sponsor shall not discriminate on the grounds of race, color, national origin, religion, creed, age, sex, sexual orientation, or the presence of any physical or sensory disability in the selection and retention of employees or procurement of materials or supplies.O 18. Sponsor's Accounting Books and Records The Sponsor shall maintain complete financial records relating to this Agreement and the services rendered including all books, records, documents, receipts, invoices, and all other evidence of accounting procedures and practices which sufficiently and properly reflect all direct and indirect cost of any nature expended in the performance of this Agreement. The Sponsor's records and accounts pertaining to this Agreement are to be kept available for inspection by the Office of the State Auditor, federal auditors, the Jefferson County Auditor, and any persons duly authorized by the County shall have full access and the right to examine any of these materials during this period for a period of ten (10) years after the date of the final payment to Sponsor. If any litigation, claim or audit is started before the expiration of the six (6) year period, the records shall be retained until all litigation, claims, or audit findings involving the records have been resolved. Copies shall be made available upon request. Records and other documents, in any medium, furnished by one party to this Agreement to the other party, will remain the property of the furnishing party, unless otherwise agreed. 19. Licensing,Accreditation and Registration The Sponsor shall comply with all applicable local, state and federal licensing, accreditation, permitting, and registration requirement/standards necessary for the performance of this Agreement. Big Quilcene River—Moon Valley Acq. 6 October 5, 2022 20. Disputes Except as otherwise provided in this Agreement, when a bona fide dispute arises between Jefferson County and the Sponsor and it cannot be resolved, either party may request a dispute hearing with a mediator agreed upon by the parties, or if agreement cannot be made, the mediator shall be selected by the Jefferson County Superior Court. Either party's request for a dispute hearing must be in writing and clearly state: a. the disputed issue(s); b. the relative positions of the parties; and, c. the Sponsor's name, address and agency contact number. Requests for dispute hearings must be mailed to the Project Manager, Jefferson County Environmental Public Health Department, 615 Sheridan St., Port Townsend, WA 98368, within fifteen (15) days after either party received notice of the disputed issue(s). The parties agree that this dispute process shall precede any action in a judicial or quasi-judicial tribunal. The parties shall split evenly the cost of mediation or whatever form of dispute resolution is used. The parties shall bear their own costs and attorney's fees in any dispute. The venue for any legal action shall be solely in the appropriate state court in Jefferson County, Washington, subject to the venue provisions for actions against counties in RCW 36.01.050. Each party to this Agreement shall be responsible for their own dispute and litigation costs, including attorney's fees. 21. Termination for Funding Jefferson County may unilaterally terminate this Agreement in the event funding from state, federal, or other sources are withdrawn, reduced, or limited in any way after the effective date of this Agreement. 22. Termination for Convenience The County reserves the right to terminate this Agreement at any time by giving ten (10) days written notice to the Sponsor. 23. Assignment The Sponsor shall not sublet or assign any interest in this Agreement, and shall not transfer any interest in this Agreement without the express written consent of the County. 24. No Waiver Waiver by any party of any provision of this Agreement or any time limitation provided for in this Agreement shall not constitute a waiver of any other provision. Big Quilcene River—Moon Valley Acq. 7 October 5, 2022 No consent by either party to, or waiver of, a breach by either party, whether express or implied, shall constitute a consent to, waiver of, or excuse of any other, different, or subsequent breach by either party. No term or provision of this Agreement shall be considered waived by either party, and no breach excused by either party, unless such waiver or consent is in writing signed on behalf of the party against whom the waiver is asserted. Failure of a party to declare any breach or default immediately upon the occurrence thereof, or delay in taking any action in connection with, shall not waive such breach or default. 25. County Does Not Assume Additional Duties The County does not assume any obligation or duty, except as required by federal or state law, to determine if Sponsor is complying with all applicable statutes, rules, codes ordinances or permits. 26. Agreement Representatives All written communications sent to the Sponsor under this Agreement shall be addressed and delivered to: Sponsor Contact Conservation Futures Program Contact Mendy Harlow, Executive Director Tami Pokorny,Natural Resources Program Hood Canal Salmon Enhancement Group Coordinator P.O. Box 2169 Jefferson County Environmental Public Belfair, WA 98528 Health Ph: 360-275-3575 Ext. 123 615 Sheridan Street Email: mendy@pnwsalmoncenter.org Port Townsend, WA 98368 Ph: 360-379-4498 Email: tpokorny@co.jefferson.wa.us These addresses shall be effective until receipt by one party from the other of a written notice of any change. 27. Entire Agreement This Agreement, along with all attachments, constitutes the entire agreement of the parties. No other understandings, oral or otherwise, regarding this Agreement shall exist or bind any of the parties. 28. Severability Provided it does not result in a material change in the terms of this Agreement, if any provision of this Agreement or the application of this Agreement to any person or circumstance shall be invalid, illegal, or unenforceable to any extent, the remainder of this Agreement and the application this Agreement shall not be affected and shall be enforceable to the fullest extent permitted by law. Big Quilcene River—Moon Valley Acq. 8 October 5, 2022 29. Survival Those provisions of this Agreement that by their sense and purpose should survive the term of this Agreement shall survive the term of this Agreement. Without limiting the generality of the preceding sentence, and for the avoidance of doubt, the provisions that survive the term of this agreement include: (a) controlling law; (b) insurance; and, (c) indemnification. 30. Binding on Successors, Heirs and Assigns This Agreement shall be binding upon and inure to the benefit of the parties' successors in interest, heirs and assigns. 31. No Third-party Beneficiaries The parties do not intend, and nothing in this Agreement shall be construed to mean, that any provision in this Agreement is for the benefit of any person or entity who is not a party. 32. Signature in Counterparts This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which counterparts together shall constitute the same instrument which may be sufficiently evidenced by one counterpart. Execution of this Agreement at different times and places by the parties shall not affect the validity of this Agreement, so long as all the parties execute a counterpart of this Agreement. 33. Facsimile and Electronic Signatures The parties agree that facsimile and electronic signatures shall have the same force and effect as original signatures. 34. Public Records Act Notwithstanding any provisions of this Agreement to the contrary, to the extent any record, including any electronic, audio, paper or other media, is required to be kept or indexed as a public record in accordance with the Washington Public Records Act, Chapter 42.56 RCW (as may be amended), the Sponsor agrees to maintain all records constituting public records and to produce or assist the County in producing such records, within the time frames and parameters set forth in state law. The Sponsor also agrees that upon receipt of any written public record request, the Sponsor shall, within two business days, notify the County by providing a copy of the request per the notice provisions of this Agreement. This Agreement, once executed, shall be a "public record" subject to production to a third party if it is requested pursuant to the Washington Public Records Act. Big Quilcene River—Moon Valley Acq. 9 October 5, 2022 35. Effective Date of this Agreement This Agreement shall be effective upon signing by all parties. 36. Controlling Law It is understood and agreed that this Agreement is entered into in the State of Washington. This Agreement shall be governed by and construed in accordance with the laws of the United States, the State of Washington and the County of Jefferson, as if applied to transactions entered into and to be performed wholly within Jefferson County, Washington between Jefferson County residents. No party shall argue or assert that any state law other than Washington law applies to the governance or construction of this Agreement. 37. Order of Precedence. If there is an inconsistency in the terms of this Agreement, or between its terms and any applicable statute or rule, the inconsistency shall be resolved by giving precedence in the following order: (a) Applicable state statutes and rules; (b) local laws and rules; and, (c) case law. 38. Force Majeure Neither party shall be in default by reason of any failure in performance of this Agreement, if such failure arises out of causes beyond a party's control and without fault or negligence of such party, including but not limited to; (a) acts of God; (b) terrorism or other acts of a public enemy; (c)war; or, (d) epidemics, pandemics or quarantine restrictions. 39. Attachments Any attachment to this Agreement is part of this Agreement and is incorporated by reference into this Agreement. 40. Representations and Warranties The parties represent and warrant that: (a) Each person signing this Agreement is fully authorized to enter into this Agreement on behalf of the party for whom signature is being made; (b) Each party that is a corporate entity is duly organized and validly existing in good standing under the laws of one of the states of the United States of America; (c) The making and performance of this Agreement will not violate any provision of law or of any party's articles of incorporation, charter, or by-laws; (d) Each corporate party has taken all necessary corporate and internal legal actions to duly approve the making and performance of this Agreement and that no further corporate or other internal approval is necessary; and, (e) Each party has read this Agreement in its entirety and know the contents of this Agreement, that the terms of this Agreement are contractual and not merely recitals, and that they have signed this Agreement, having obtained the advice of legal counsel. DATED this I-74 day of 0 CT L i , 20 . Z- . Big Quilcene River—Moon Valley Acq. 10 October 5, 2022 (SIGNATURES FOLLOW ON THE NEXT PAGE) Big Quilcene River—Moon Valley Acq. 11 October 5, 2022 JEFFERSON COUNTY WASHINGTON HOOD CANAL SALMON ENHANCEMENT GROUP Board of County Commissioners Jeffersonounty, Washington 164-(--Ajl 0 By: \ l"" By: likeit"41 Heidi E s isenhour (,hair Date Signature By: Approved Telephonically I cii 7/2 Z Name: - A\I A Oti.✓l,c t ) Greg Brotherton, Commissioner Date p , Title: \'-X-(.Lt,ClAv t, �l V -c TD By: 16/17bZZ Date: 01 -1 11-C Z Z� Kate ean, Commissioner Date SEAL: ATTEST: C Ct 64,(Cti,v ' Carolyn'Gallaway, / Date Clerk of the Board Approved as to form only: October 5, 2022 Philip C. Hunsucker, Date Chief Civil Deputy Prosecuting Attorney Big Quilcene River-Moon Valley Acq. 12 October 5, 2022 APPENDIX A Scope of Work Hood Canal Salmon Enhancement Gropu, as project sponsor "Sponsor", will perform the following tasks in order to implement the Big Quilcene River — Moon Valley Aquisitions Project: Task l: Acquire Matching Contribution Sponsor shall secure the necessary matching contribution no less than approximately sixty-six percent (66%), of the total project cost. The match must be in an eligible form consistent with JCC 3.08.030(5). Deliverable la: Matching contribution(s) of no less than approximately 66% of the total project cost. Task 2: Acquire Statutory Warranty Deed Sponsor shall acquire a statutory warranty deed on the expanded subject parcel, APN# 702 233 006 that incorporates approved Conservation Futures Program language, including the language in item"C" of this Agreement. Deliverable 2a: Final draft statutory warranty deed Deliverable 2b: Qualifying appraisal and estimated settlement statement(HUD-1) Deliverable 2c: Recorded statutory warranty deed Task 3: Stewardship Plan Sponsor shall provide a plan for stewardship Deliverable 3a: Electronic copy of stewardship plan Task 4: Annual Reporting Sponsor shall monitor and report on the property as described in item "D" of this Agreement and submit required reports to the Conservation Futures Citizen Oversight Committee (through staff) in the format provided for each year that it is required. Deliverable 4a: Completed annual reports. Big Quilcene River—Moon Valley Acq. 13 October 5, 2022 Exhibit A Statutory Warranty Deed Big Quilcene River—Moon Valley Acq. 14 October 5, 2022 When recorded return to: Gus Johnson,Manager Hood Canal Salmon Enhancement Group PO Box 2169 Belfair,WA 98528 Filed for Record at Request of Jefferson Title Company,Inc. Escrow Number:89353CH Statutory Warranty Deed THE GRANTORS Cynthia Pollard and Michael Pollard,wife and husband for and in consideration of TEN DOLLARS AND OTHER GOOD AND VALUABLE CONSIDERATION in hand paid, conveys and warrants to Hood Canal Salmon Enhancement Group,a Washington non-profit corporation the following described real estate,situated in the County of Jefferson,State of Washington Abbreviated Legal:Ptns SW&SE 23-27-2W For Full Legal See Attached Exhibit"A" SUBJECT TO: Covenants,Conditions,Restrictions,Easements,Plats and Surveys,if any,affecting title, which may appear in the public record Tax Parcel Number(s):702 233 001 Dated Cynthia Pollard Michael Pollard STATE OF Washington COUNTY OF Jefferson } ss. I certify that I know or have satisfactory evidence that Cynthia Pollard and Michael Pollard (is/are)the person(s)who appeared before me,and said person(s)acknowledged that they signed this instrument and acknowledged it to be their free and voluntary act for the uses and purposes mentioned in this instrument. Dated: Notary name printed or typed: Notary Public in and for the State of Washington Residing at My appointment expires: LPB 10-05(i-I) Page 1 of 2 EXHIBIT A The North'h of the West'/2 of the Southeast''/of Section 23,Township 27 North,Range 2 West, W.M.,Jefferson County,Washington; Together with the South 1,017.58 feet of the East'/2 of the Northeast''/of the Southwest'/4 of Section 23,Township 27 North,Range 2 West,W.M.,Jefferson County,Washington; Except that portion of the aforesaid tract lying South of the following described line; Commencing at the West''/corner of said Section 23; Thence North 87°24'26"East 2,314.28 feet to the center of said Section 23; Thence continuing North 87°24'26"East 910.79 feet to the True Point of Beginning; Thence South 28°19'31"West 454.90 feet; Thence South 19°44'14"East 113.81 feet; Thence South 61°48'25"West 148.23 feet; Thence South 30°49'23"West 214.76 feet; Thence South 04°23'10"West 219.18 feet; Thence South 68°43'16"West 230.48 feet; Thence South 13°50'09"West 107.69 feet; Thence South 67°44'08"West 227.70 feet; Thence North 51°16'24"West 187.96 feet; Thence North 78°50'23"West 73.09 feet; Thence South 78°37'44"West 152.36 feet; Thence South 55°04'12"West 288.84 feet to the West line of the East'h of the Northeast%of the Southwest 1 of said Section 23 and the terminus of said described line. Situate in the County of Jefferson,State of Washington. SUBJECT TO: Grantee's costs of acquiring the Property were provided in part by grant funding from the Jefferson County Conservation Futures property tax authorized by Washington law. Grantee hereby agrees to be bound by Jefferson County Code(JCC)3.08.030(9),the uses authorized under RCW 84.34.230, including the obligation to ensure the long-term conservation of the Property in accordance with the terms and conditions of the statutory warranty deed,and to obtain the consent of Jefferson County prior to any conveyance of any interest acquired hereby. Consistent with JCC 3.08.030(9),the Property shall not be converted to a different use unless and only if other equivalent lands or interest in lands within Jefferson County are received by Grantee in exchange. Initial Initial LPB 10-05(i-1) Page 2 of 2 Exhibit B Boundary Line Adjustment Big Quilcene River—Moon Valley Acq. 15 October 5, 2022 656298 PGS : 6 BLA 09/13/2022 10:11 RIM $208.50 JEFF CO DEPT OF COMCIUNITY DEVELOPMEP Jefferson County WA Auditor's Office - Rose Ann Carroll, Auditor IIII KA+ w@thhv4iLh+hP,tiMAIIt 'IVFLY1/2Ig UIIII AFTER RECORDING MAIL TO: HCSEG CSEG PO BOX 2169 Address: City/State: BELFAIR, WA 98529 `~ Boundary Line Adjustment MLA22-00040 Grantor(s): / / I. Cynthia Pollard \N.-ram/ 2. Michael Pollard ( c"l Grantee(s): \\ •�/ Hood Canal Salmon Enhancement Group'-N. 12 Legal Description:Parcels involved in the adjustment aie tiyleg1ly described as follows(include Assessor's Property Tax Parcel Account Numbers): ``i' r Parcel A: APN 702233006-Ptn SW1J4-Sc.q a,Twp.27N, Rge 2W,See Attached Panel B: APN 702233001 ..SW1f4&'$E1/4 Se.23,Twp.27N, Rge 2W, See Attached Parcel C: Parcel D: Boundarysubje line 1 cf/to�ilstmertt described as follows(new legal description): } See Attached I \ ; ) I te.pature o the adjustment is described as follows: Add Parton of APN 702233001 to APN 702233006 for a salmon recovery and enharlcement project. 1054591 139781 *9/13/2022 10.00:k 656298 Page 2 of 6 09/13/2022 10:11 AM BOUNDARY LINE ADJUSTMENT OLD LEGAL DESCRIPTIONS ,A EXHIBIT A OLD LEGAL DESCRIPTIONS !` `/; / 1 \, . `/1 PARCEL A \ \ The W1/2 of the SE1/4 of the SW1/4 of Section 23,Township 7(Nor ,, ari '2 West, Willamette Meridian,Washington; TOGETHER WITH that portion of the W1/2 of the NE'I/4 of the$VW/4 of Section 23, Township 27 North, Range 2 West,Willamette Meridiat,Washiington, lying Southerly of the following described line: \ Commencing at West Quarter corner of said Section 23;thenoe'South 02°16'40"East along the west line of the SW1/4 of said Section 23, 1318.75 feet to the SW corner of the NW1/4 of the SW1/4 of said Section 23;the'nce'along the South line of the NW1/4 of the SW1/4 of said Section 23, North 87°18',,,7"-EaitNif 20.31 feet to the Southeast corner of the NW1/4 of the SW1/4 of said Bet-Von n2,alid the True Point of Beginning; thence North 73°48'49"East 261.94fee;thelic0 North 86°24'18"East 308.71 feet to the East Line of the W1/2 of the NE1I4.ofthe$W144 of said Section 23 and the terminus of this described line. :--- , `N AND TOGETHER WITH that port�'t Oftoe,SM/2 of the SW1/4 of Section 23,Township Wfl 27 North, Range 2 West, lamette`Me0dian,Washington, lying Southerly of the following described line:%; "'<,�N Commencing at West Quarie)cemexof said Section 23;thence South 02°16'40" East along the west line of the$WI/4 of said Section 23, 1318.75 feet to the SW corner of the NW1/4 of the SVW%4 Of saidSoction 23;thence continuing South 02°16'40" East along said West Line bfthe SW1/4, 337.59 feet to the true point of beginning;thence North 78°00'13"East 354,29feet;thence North 68°43'13" East 615.26 feet;thence North 56°38'22"east 1b9.40 feet;thence North 70'52'12"East 99.95 feet to the Southeast cornerpfthe't W1/4 of the SW1/4 of said Section 23 and the terminus of this described - EXCEPT,that pdr*l,>of the W1/2 of the SW1/4 of Section 23, Township 27 North, Range West;Willamette Meridian,Washington, lying southerly of the thread of the Big Quilcene Riverr, ntaining 15 Acres, more or less. 656298 Page 3 of 6 09/13/2022 10:11 AM PARCEL B The North Half of the West Half of the Southeast Quarter, Section 23,Township 27 North, Range 2 West,Willamette Meridian,Washington; Together with the North 500 feet of the East Half of the Southeast Quarter of the\ Southwest Quarter,Section 23, Township 27 North, Range 2 West,Willamette. .\\ Meridian,Washington; Together with the South 1017.58 feet of the East Half of the Northeast,gtJarter of the ') Southwest Quarter,Section 23,Township 27 North, Range 2 West, `Itamete� ' I <� Meridian,Washington. / f —, \�)j -/,� -_ / r' 656298 Page 4 of 6 09/13/2022 10:11 AM BOUNDARY LINE ADJUSTMENT NEW LEGAL DESCRIPTIONS EXHIBIT B :,.\ • \ \ NEW LEGAL DESCRIPTIONS C \ PARCEL A ,I \„ l / The North Half of the West Half of the Southeast Quarter, Sectiop 23,Township 27 North, Range 2 West,Willamette Meridian,Washington; !i—\‘\ �•, Together with the South 1017.58 feet of the East Half of the Northeast quarter of the Southwest Quarter,Section 23,Township 27 North, Renge-'2 Wept,Willamette Meridian,Washington; % ( l\ Except that portion of the aforesaid tract lying North of the folloMring described line; Commencing at the West Quarter corner of said Section 23;thence North 87°24'26" East 2314.28 feet to the center of said Section 23;thence uitinuing North 87°24'26" East 910.79 feet to the true point of beginning;.hence South 28°19'31"West 454.90 feet;thence South 19°44'14"East 113.81 feet;t{ienceSouth 61°48'25"West 148.23 feet;thence South 30°49'23"West 214.76 feet;thericeSouth 04°23'10°West 219.18 feet;thence South 68°43'16"West 230.48ifeet;(hence South 13°50'09"West 107.69 feet;thence South 67°44'08"West 22. .70 feet'thehce North 51°16'24"West 187.96 feet;thence North 78°50'23"West 73.69•feet:thence South 78°37'44"West 152.36 feet; thence South 55°04'12"West 288,84.feet to the West line of the East Half of the Northeast quarter of the Southwest Quarter of said section 23 and the terminus of said described line. AND TOGETHER WITH''ttCg- tl'500-feet of the East Half of the Southeast Quarter of the Southwest Quartefi Sectien 23,,,TOwnship 27 North, Range 2 West,Willamette Meridian,Washington;' , AND TOGETHER WI 'H•the W112 of the SE1/4 of the SW1/4 of Section 23,Township 27 North, Range 2 Weet,Wiliapette Meridian,Washington; AND TOGETHER'WI-TH that portion of the W1/2 of the NE1/4 of the SW1/4 of Section 23, Township 27(Nbrth, Range 2 West,Willamette Meridian,Washington, lying Southerly of,the fbKow'ing described line: Commencing at West Quarter corner of said Section 23;thence South 02°16'40" East along,the'westlineof the SW1/4 of said Section 23, 1318.75 feet to the SW corner of the NW114 of t,he.SW1/4 of said Section 23;thence along the South line of the NW1/4 of ,the SW 1J4'of said Section 23, North 87°18'47"East 1120.31 feet to the Southeast corner of ,ie',NW1/4 of the SW1/4 of said Section 23 and the True Point of Beginning; thence N6rth 73°48'49"East 261.94 feet;thence North 86°24'18" East 308.71 feet to the East-Line of the W1/2 of the NE1/4 of the SW1/4 of said Section 23 and the terminus of this described line. 656298 Page 5 of 6 09/13/2022 10:11 AM AND TOGETHER WITH that portion of the W1/2 of the SW1/4 of Section 23,Township 27 North, Range 2 West,Willamette Meridian,Washington, lying Southerly of the following described line: Commencing at West Quarter corner of said Section 23;thence South 02°16'40" East along the west line of the SW1/4 of said Section 23, 1318.75 feet to the SW corner of the NW1/4 of the SW1/4 of said Section 23;thence continuing South 02°16.40° 3st along said West Line of the SW1/4,337.59 feet to the true point of beginning;thence North 78°00'13"East 354.29 feet;thence North 68°43'13° East 615.26;feet;tt erii ,� North 56°38'22"East 109.40 feet;thence North 70°52'12' East 99.95-feet tb,tt* Southeast corner of the NW1/4 of the SW1/4 of said Section 23 andttleterrr{ip s of this described line; EXCEPT that portion of the W1/2 of the SW1/4 of Section 23,fQwnshiP�I 27 Npith, Range 2 West,Willamette Meridian,Washington, lying southerly otthe,ihread of the Big Quilcene River, containing 15 Acres, more or less. , --! PARCEL B The North Half of the West Half of the Southeast Quarter,Section 23, Township 27 North, Range 2 West,Willamette Meridian,Washington; Together with the South 1017.58 feet of the East Hal1of the Northeast quarter of the Southwest Quarter, Section 23,Township r27'f'lorfh,,Range 2 West,Willamette Meridian,Washington; 1.;�r`- �✓ Except that portion of the aforesaid tiiO`IyipoSouth of the following described line; Commencing at the West Quarter conerof Said Section 23;thence North 87°24'26" East 2314.28 feet to the center of, aid'Section 23;thence continuing North 87°24'26" East 910.79 feet to the true'point bfCbegiyin ng;thence South 28°19'31"West 454.90 feet;thence South 19°44Y1 'EesUt13.8y feet;thence South 61°48'25"West 148.23 feet;thence South 30°49'23' West214.76 feet;thence South 04°23'10"West 219.18 feet;thence South 68"°431T West feet;thence South 13°50'09"West 107.69 feet;thence South 617°441;18"West 227.70 feet;thence North 51°16'24"West 187.96 feet;thence North 78%0'281.West 73.09 feet; thence South 78°37'44"West 152.36 feet; thence South 55°04 T2"-Wes.t288.84 feet to the West line of the East Half of the Northeast quarter of thuthwest Quarter of said section 23 and the terminus of said described line. l,1 \ • jl 656298 Page 6 of 6 09/13/2022 10:11 AM STATEMENT OF INTENT: This recording is for the purpose of assisting with a boundary line adjustment pursuant to RCW 58.17.040(6). It does not create any additional lots, tracts, parcels, or division as the land described herein shall merge or be integrated into abutting property presently owned,by the proponent.Nor does the boundary line adjustment result in any lots,tracts,parcels,or,division which contain insufficient area and dimension to meet minimum County,and'sattitaion requirements for width and area for a building site. \ eif-----1 �. - roponents' ignature) - STATE OF WASHINGTON . f j ,\N. COUNTY OF JEFFERSON \ �� r-,/ On iWr 3 k , 20�III, pt;,rsonally appeared CArrre-Ze.- . Cl�O.-...e-% ea(i„.1k an4 p{ovec4i t¢ me on the basis of satiefactory evidence to the person whose name is sci1 scri1 ed'to this instrument, and acknowledged that she executed it. l WITNESS my hand and official seal this 31 da ,20 . Notary Public in and e S to of Wash' .,,, ,_,f = rNF+;'a IP � Residing at (�.'ar ems+-+^s.-J•;i,Sp, 3' by t �= ;,, 7 `n1 •-' �i 155776 a1 O \\ /,, , .,y 0s�+ 2 s / > ��J i C;- sbgu d ry`line adjustment has been reviewed and approved by the Jefferson County iew ' ision. N Cr(Z 22 sistant Planner 1 ate N H m LL Z ' 2 3, p W 3 2i SOFI alg t .6N.. II(175 O� CO Do n - .�s$: O LL O�,R �FFF�j O 0,174 < ui.c N 3 F- Z ti Wan n X; W r Z W°O Q W g<z'''W >_diaJ LL NN IX m O.-= n Q3 fe 0-0 zo € O �g sg "ggg OE 0 boy qig V O ogaa C C li W 614 q Ui N SSEg VJ C:I 0 W w 22R. .N.— 4 N p11 CS' L m w gig w tN _ CD ^` o a 2 3 LL 0 0111 C ; vo .0110 8 z� W 1._ y t g C ' N Z 0-2 p €°w Y tb lR ; R 6,.! !ztl gvq_v ° - W 3 .. J I 2 mOCON 5R ^m VMS ig., g ', a d:il z 2 z o 4X, ° ...0 egg. gg ., U WnO N 3g 3 115 1a 9 I ; Sf, Ai.Y e 0 Q Q o o S„ a =z� 1�6 `i s O=0N > zs. ft Pu I R Fi g 11 a; = Z g Z N tge -6 ffg- �R.. � w m U o < H 51i > m w s W ; 5 m €g3"- � ,,g, m a CnEag U km li , y'zg2 Rd N. 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I �' N I ffi! _Wb I ; �� \\ Q N z- \ w is z tl ` J Z Q > �: O W a3 0 awwfn R n U V Y � o • � 7 z z, w � N X -I 3 8 Qw—J 1 er :r c�z o z t° � 3 P 0=Q N 11 f3 :1 �34 m 13Itla jWw _-► _ _ 1 — ix z 11'Sttl 6'!Cf 99'OSE .ISOM tS'tEfZ 3A69tSS 0_' gi seraiav3e 3o SISVe p n Ni1,02. 1 IR T,fl 1 TA 1111:kiii,iAliblANLII PA MO Mflf Z'a 2:i.GL jiff OR9f9 Exhibit C 2021 Conservation Futures Big Quilcene River—Moon Valley Acquisitions Project Application Big Quilcene River—Moon Valley Acq. 16 October 5, 2022 �k�4SON ue 2021 Jefferson County Conservation Futures Program ti Property Acquisition and/or Operations and Maintenance Project Application 9SR I N G,t0 Please complete the following application in its entirety. Be sure to answer"N/A"for questions that don't apply to the project. Incomplete applications will not be accepted for consideration. Unless directed otherwise, use as much space as needed to answer each question. Contact program staff at 379-4498 or tpokorny@co.iefferson.wa.us with questions. Background and Eligibility Information 1. Project Title: Big Quilcene River—Moon Valley Acquisitions 2. Conservation Futures Acquisition Request: $89,500.00 Conservation Futures O&M Request: $0 3. Total Conservation Futures Request: $89,500.00 4. Please indicate the type of interest contemplated in the acquisition process. X Warranty Deed Easement Other(Please describe below.) In whose name will the property title be held after acquisition? Property Title will initially be held by Hood Canal Salmon Enhancement Group after acquisition. Property Title will be transferred post-restoration. 5. Applicant Information Name of Applicant or Organization: Hood Canal Salmon Enhancement Group(HCSEG) Contact: Gus Johnson Title: Project Manager Address: PO BOX 2169 Belfair, WA 98528 Phone: (360)275-3575, ext. 115 Fax: ( ) - ,ext. Email: gus@pnwsalmoncenter.org 6. Sponsor Information: (if different than applicant) Organization Name:Jefferson County Environmental Public Health Contact: Tami Pokorny Title:Natural Resources Program Coordinator Address: 615 Sheridan St. Port Townsend,WA 98368 Phone: (360)316-9870, ext. Fax: ( ) - ,ext. Email:tpokorny@co.jefferson.wa.us This application was approved by the sponsor's legally responsible body(e.g., board, council, etc.) on: March 17th,2021. 1 2021 CF Program Application DRAFT http://www.cojefferson.wa.us/560/Conservation-Futures-Program 7. Site Location Street Address or Description of Location: 330 Glen Logie RD, Quilcene WA 98376 Driving Directions from Port Townsend:Drive south to Quilcene WA. From Hwy 101,turn onto Glen Logie Rd. Property is located at end of road. Section: 23 Township:27N Range: 2W Assessor's Parcel Number(s): 702233001, 702233006 Please differentiate current and proposed ownership of each APN and indicate if the parcel is to be acquired with CF funds or used as match. #702233001 —Currently owned by Cynthia and Michael Pollard.Proposed ownership HCSEG. Parcel to be acquired with CF funds. #702233006- Currently owned by Mark Baclawski. Proposed ownership HCSEG. Parcel to be acquired with CF funds. Please list the assessed values for each property or APN, as applicable. Assessed values according to title report: #702233001 - $171,408.00 #702233004- $53,396.00 #702233005 -$78,065.00 #702233006- $41,477.00 Appraisals and review appraisals were completed on both properties in August 2020. #702233001 - $340,000(floodplain section of parcel only) #702233006 - $290,000(including parts of 702233005 and 702233004. Boundary line adjustment in process). 8. Existing Conditions New Site: Yes ®i Number of Parcels:2 Addition to Existing Site: I) No Acres to Be Acquired: 75.1 acres Total Project Acreage(if different): 97.1 acres Current Zoning:AL-20 -Local Agriculture Existing Structures/Facilities:None Any current covenants, easements or restrictions on land use: Parcel 702233005: Easement 2081764 State of Washington(25' strip adjacent to river left bank for public access); Conservation Easement 549560-Jefferson Land Trust Current Use: Designated Forest Land/Vacant Waterfront (name of body of water): Big Quilcene River Shoreline(linear feet): 4,367 feet 2 2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program Owner Tidelands/Shorelands: 9. Current Property Owner is is not a willing seller. Project Description 10.In 1,000 words or less,provide a summary description of the project,the match,overarching goal,and three top objectives.Include information about the physical characteristics of the site that is proposed for acquisition with Conservation Futures Program funds including:vegetation,topography,surrounding land use,and relationship to parks,trails,and open space.Describe the use planned for the site,any development plans after acquisition(including passive development),characteristics of the site which demonstrate that it is well-suited to the proposed use and plans for any structures currently on the site.If applicable,describe how the site relates to the larger project,and whether the project has a plan,schedule and funding dedicated to its completion.Please also list any important milestones for the project or critical dates,e.g.grant deadlines.List the dates and explain their importance.Please attach a spreadsheet of the budget. Jefferson County Public Health,in close partnership with the Hood Canal Salmon Enhancement Group(HCSEG with headquarters in Belfair,WA)is seeking funding from the Jefferson County Conservation Futures Fund to purchase areas of historic floodplain along the Big Quilcene River in the Moon Valley reach and protect this land as open space.These acquisitions include a 31 acre portion of the existing 84 acre Baclawski parcels,and a 45 acre portion of the existing 49 acre Pollard parcel.These portions of the existing parcels encompass the areas closest to the river and offer the greatest potential benefits for conservation and restoration.A boundary line adjustment will be needed to officially create the boundaries of these acquisitions,and a boundary line adjustment application has recently been submitted for the Baclawski portion. The purchase of these two newly created parcels of vacant land will conserve over 75 acres of historic floodplain, almost a mile of riverfront and are adjacent to a similar 22-acre parcel that HCSEG acquired in 2019.These acquisitions are not only important because of the inherent attributes and value of the land.HCSEG plans to use this land as the footprint for a large-scale salmon habitat restoration project in the Moon Valley reach in the next few years. The overarching goal of the Moon Valley Reach Project is to reconnect the Big Quilcene River to its historic floodplain in Moon Valley.By reconnecting the river to its historic floodplain,these three project goals will be met: 1. Restore salmon habitat within the reach with a focus on ESA listen Hood Canal Summer Chum. 2. Normalize sediment dynamics in the lower Big Quilcene River and reduce flood related impacts in the Quilcene community. 3. Provide increased recreational opportunities for the public. The topography in this area is essentially level,extensive floodplain with steep banks to the south side of the river and at the northern extent of the properties.The surrounding land use is forestry and rural residential. The Hwy 101 bridge over the Quilcene River and the Quilcene National Fish Hatchery are located upstream of the project area.A 25' DFW access easement and trail,used largely during the fishing season,runs through both of the subject parcels along the north bank of the river and ultimately to the community of Quilcene in the vicinity of the county's Riverside Park.A parking area to serve this access route is located just upstream of the Hwy 101 bridge. 3 2021 CF Program Application DRAFT http://www.cojefferson.wa.us/560/Conservation-Futures-Program Lawn and pasture grasses occupy a large portion of the project area.The riparian zone is native conifer forest along the south bank,where steep slopes have prevented development of the land.Along the north bank,where the historical land use is agriculture,the riparian buffer is a mix of native trees of different stages of maturity and areas dominated by noxious weeds. The Pollard property(702233001)was formally pastureland. The large meadow is now used as a hayfield and harvested at least once each year. Surrounding the field are mature stands of trees and riparian areas of the Big Quilcene River. The Baclawski property(702233006)was formally pasture and forestland. It now includes protected open space,a young fruit and nut orchard,and mature stands of forest.A conservation easement held by the Jefferson Land Trust on approximately 18 acres of land spanning the river includes 1,750' of frontage on the north bank and 575' on the south bank. In the Moon Valley Reach,the Big Quilcene River was moved, straightened,and diked to support agricultural use of the floodplain.As a result of the altered stream hydraulics and extensive diking along the north bank,the channel is now incised to a depth of up to ten feet. The artificially steep stream gradient along with the scouring force of higher flood velocities has resulted in a coarse cobble/boulder streambed lacking spawning gravels suitable for ESA-listed summer chum salmon. This has also contributed to sediment aggradation problems downstream in Quilcene and beyond the river mouth where an extensive delta cone of sediment has formed. The Moon Valley section of the Big Quilcene River has been identified as a target for restoration in the Summer Chum Recovery Plan and in the Hood Canal Coordinating Council's 3-Year Work Program. Specifically, restoration and protection of freshwater reaches in the lower watershed are identified as the highest priority action for summer chum recovery in the Big Quilcene River,with habitat diversity,channel stability,flow moderation, and sediment load identified as key features for restoration. The project will allow for improved salmon habitat in the lower watershed and estuary and contribute to restoration efforts already underway there by attenuating floods,reducing downstream sediment transport,and contributing to temperature and flow regulation. Restoration and protection of the Moon Valley floodplain will contribute to improved water quality,better rearing conditions for juvenile salmon,expanded habitat for other wildlife(including birds and beavers),and an enhanced trail system and outdoor experiences for students, recreationists,and visitors in Quilcene. The Moon Valley Restoration project has already acquired one of the three parcels needed for the project footprint.This 22-acre property was acquired in 2019 and is directly upstream of the two parcels whose acquisition is discussed in this project description.All structures and most utilities on site have been removed,and the property has generally been converted back to a natural state.A 30%restoration design has also been completed.HCSEG has submitted a$5 million dollar grant request to the Floodplains by Design(FbD)program to fund final design and construction of the project. The request was ranked#9 and at this time has a high likelihood of being funded.The acquisition of these two parcels of land is the final piece needed to proceed with this important restoration project.Matching funds for this acquisition will come from other grant sources, specifically the Salmon Recovery Funding Board(SRFB)and Floodplains by Design(FbD). Throughout the duration of the project,HCSEG has partnered with Jefferson County Public Health,the Jamestown S'Klallam Tribe,and the United States Forest Service.These agencies have provided numerous types of support including technical review,land acquisition assistance,and general project planning.The Jefferson County Board of County Commissioners wrote a long and detailed letter of support for the Moon Valley project in November of 2020. 11.Estimate costs below,including the estimated or appraised value of the propert(ies)or property right(s)to be acquired,even if Conservation Futures funds will only cover a portion of the total project cost.In the case of projects involving multiple acquisitions,please break out appraisals and estimated acquisition costs by parcel. 4 2021 CF Program Application DRAFT http://www.co jeferson.wa.us/560/Conservation-Futures-Program Estimated or Appraised Value of Propert(ies)to be Acquired: 702233001 appraised cost of acquisition area: $340,000.00 702233006 appraised cost of acquisition area: $289,000.00 Total Estimated Acquisition-related Cost(see Conservation Futures Manual for eligible costs): 702233001 estimated acquisition-related cost: $53,205.00 702233006 estimated acquisition-related cost: $53,205.00 Total Operation and Maintenance Cost: 702233001 estimated operation and maintenance cost:$21,690.00 702233006 estimated operation and maintenance cost: $21,690.00 Total Project Cost: 702233001 estimated total project cost: $434,735.00 702233006 estimated total project cost: $383,735.00 Basis for Estimates(include information about how the property value(s)was determined,anticipated acquisition- related costs,general description of operation and maintenance work to be performed,task list with itemized budget,and anticipated schedule for completion of work): Property values are based off of recently completed appraisals(September 2020).Anticipated acquisition related costs are based off of project specific quotes,and costs from similar projects recently completed in the Quilcene area.Operation and maintenance work consists of creating and implementing a stewardship plan,controlling noxious weeds,and installing fencing and signs along the property boundary. Please note that no O&M funding is requested from the Conservation Futures grant.Anticipated schedule for completion of work hinges directly on property sale closing date occurs.All work is anticipated to be completed within 1 year of property closing date. Please see attached budget spreadsheet for detailed budget explanation. O & M only go to question#15: Scored Questions 1 a. Sponsor or other organizations will _will not contribute to acquisition of proposed site and/or operation and maintenance activities. 1 b.If applicable,please describe below how contributions from groups or agencies will reduce the need to use Conservation Futures program funds. Around 89%of this acquisition project will be funded by Salmon Recovery Fund Board(SRFB)or Floodplains by Design(FbD). This largely encompassing amount of other funding will reduce the need for CF program funds,and result in only 11%of the project being funded by the CF program. 1 c.Matching Fund Estimate Acquisition O&M 5 2021 CF Program Application DRAFT http://www.cojefferson.wa.us/560/Conservation-Futures-Program Conservation Futures Funds Requested $89,500.00 $0.00 10.9% Matching Funds/Resources* $645,910.00 $83,059.00 89.1% Total Project Acquisition Cost $735,410.00 $83,059.00 100% *If a prior acquisition is being proposed as match,please describe and provide documentation of value, location, date of acquisition and other information that would directly link the match to the property being considered for acquisition. l d. Source of matching Amount of Contribution If not, Contribution If not, funds/resources contribution approved? when? available now? when? SRFB $ 289,184.00 `�- No =• No FbD $41,335.00 '• No 40 No SRFB $404,891.00 Yes No 9/22/21 Yes o 12/31/21 $ Yes No Yes No NOTE: Matching funds are strongly recommended and a higher rating will be assigned to those projects that guarantee additional resources for acquisition. Donation of property or a property right will be considered as a matching resource. Donation of resources for on-going maintenance or stewardship("in-kind" contributions) are not eligible as a match. 2 a. Sponsoring agency is Wis not prepared to provide long-term stewardship(easement monitoring, maintenance, up-keep,etc.)for the proposed project site. 2 b. Describe any existing programs or future plans for stewardship of the property, including the nature and extent of the commitment of resources to carry out the stewardship plan. Hood Canal Salmon Enhancement Group will hold the properties and steward them utilizing grant funds until all phases of restoration are completed. Both the Skokomish and Jamestown S'Klallam Tribes as well as Jefferson Land Trust have expressed interest in taking title post-restoration and in providing long-term stewardship consistent with existing conservation and public access easements and state grant requirements(Deed of Right). Jefferson Land Trust stewards the existing conservation easement on the Baclawski parcel and would be closely involved if the conservation easement on the Baclawski property is expanded or,otherwise,requires amendment. 3 a.Describe the sponsoring agency's previous or on-going stewardship experience. Jefferson County has acquired, restored and/or stewards floodplain properties on the Dosewallips,Duckabush and Big Quilcene River(for the purpose of salmon recovery)in coordination with partner agencies and organizations. Hood Canal Salmon Enhancement Group has acquired,restored,and stewards many properties across the Hood Canal watershed including a property neighboring the proposed acquisitions. 3 b.Has the sponsor and/or applicant of this project been involved in other projects previously approved for Conservation Futures funding? 6 2021 CF Program Application DRAFT http://www.cojefferson.wa.us/560/Conservation-Futures-Program us/560/Conservation-Futures-Program No,neither the sponsor nor applicant has been involved in a project previously approved for Conservation Futures funds. _ 2 Yes,the sponsor and/or applicant for this project has been involved in a project previously approved for Conservation Futures funds. Please provide details: HCSEG has been awarded funds from the Jefferson County Conservation Futures grant for the Moon Valley project twice before. $2,500 was awarded in 2016 and used for the purchase of the Whittaker parcel in 2018. Another$2,500 was awarded in 2018 for the upcoming purchase of the Baclawski parcel. 4 a.Property can_cannot feasibly be acquired in a timely fashion with available resources. 4 b.Necessary commitments and agreements_are = are not in place. 4 c.All parties are_are not in agreement on the cost of acquisition. If"not"to any of the above,please explain below. HCSEG is currently working with Mark Baclawski to negotiate a purchase and sale agreement. The finalization of this PSA is imminent,as we are just waiting for the boundary line adjustment to be completed in order to proceed. HCSEG has had ongoing positive discussions with the Pollards about the acquisition of their land within the floodplain. The Pollards have recently signed a notice of just compensation for the appraised price of the proposed acquisition area,and have expressed interest in making a sale once funding is in place. 5.The proposed acquisition_is specifically identified in an adopted open space,conservation,or resource preservation program or plan,or community conservation effort. Please describe below, including the site's importance to the plan. Please reference the website of the plan if available or include the plan with this application. _complements an adopted open space or conservation plan,but is not specifically identified. Please describe below, and describe how the proposed acquisition is consistent with the plan. is a stand-alone project. •The lower river is identified in local salmon recovery chapter"Guidance for Prioritization"(see https://hcccwagov.app.box.com/s/ru01 xmw6q5yga4b2c5mo9fl 9km5bvxkt). •The lower river is identified in Total Maximum Daily Load(TMDL)implementation plan(or through consultation with TMDL lead for Ecology)as a high priority for protection and/or restoration of riparian cover. •The lower river is identified in Pollution Identification and Correction(PIC)planning process(or through consultation with PIC leads)as a high priority for protection and/or restoration and protection and/or restoration of riparian cover can contribute to stated goals for shellfish beds. 6.Conservation Opportunity or Threat: 6 a.The proposed acquisition site_does _does not provide a conservation or preservation opportunity which would otherwise be lost or threatened. 6 b.If applicable,please carefully describe the nature and immediacy of the opportunity or threat,and any unique qualities about the site. 7 2021 CF Program Application DRAFT http://vvww.cojefferson.wa.us/560/Conservation-Futures-Program us/560/Conservation-Futures-Program This is a unique opportunity to acquire a highly significant stretch of the Big Quilcene River for comprehensive conservation and restoration. The acquisition phase is the first phase of a project that will result in multiple positive benefits and contribute significantly to the overall productivity of the Big Quilcene River.Opportunities to work with adjacent willing sellers of such high-potential properties to help reverse mistakes of the past on a large scale are exceedingly rare. 7. Summarize the project's conservation values and how the CF funds requested support these values. The historic floodplain in Moon Valley has enormous conservation and restoration potential.Purchasing this significant area and placing it into conservation will help to ensure that it cannot be developed,and will be preserved in perpetuity for the benefit of fish,wildlife,and public recreation.Conservation values include increasing both natural habitat and the abundance of fish and wildlife populations,including the ESA listed Hood Canal Summer Chum and Puget Sound Steelhead. Conservation Futures funds will aid in making this vision a reality by contributing to the purchase price of the Moon Valley floodplain area. 8. Th roposed acquisition: 8 a. a provides habitat for State of Washington Priority Habitat and/or State or Federal Threatened, Endangered or Sensitive species. 8 b. W provides habitat for a variety of native flora or fauna species. 8 c. W contributes to an existing or future wildlife corridor or migration route. If affirmative in any of the above,please describe and list the Priority Habitat(s)and Threatened, Endangered, or Sensitive species below, and cite or provide documentation of species'use.' ESA-listed species utilizing the Big Quilcene River include: -Hood Canal Summer Chum -Puget Sound Summer and Winter Steelhead Species use documented at:http://www.ecy.wa.gov/services/gis/maps/wria/sasi/sasi.htm ESA-listed spotted owls as well as bald eagles,harlequin ducks and cutthroat trout occur in the area.These acquisitions will enhance the riparian wildlife corridor linking Olympic National Forest and Olympic National Park with Quilcene Bay and Hood Canal. 8 d.Does the current owner participate in conservation programs that enhance wildlife habitat?If so,please provide details. The Baclawskis have placed 18 acres of their land in a conservation easement with Jefferson Land Trust. The terms of this conservation easement serve to enhance wildlife habitat by preventing any future development in the easement area. 9. Describe to what degree the project protects habitat for anadromous fish species(for example:marine shorelines,stream/river corridors including meander zones,and riparian buffers). Please provide documentation and maps that demonstrate the location,quality and extent of the existing buffer and adjoining habitat. The main focus of the Moon Valley restoration project is to improve,create,and protect habitat for all anadromous fish in the Big Quilcene River, including the ESA listed Hood Canal Summer Chum and Puget ' See,for example,http://www.dnr.wa.gov/researchscience/topics/naturalheritage/pages/amp nh.aspx http://www.wdfw.wa.gov/conservation/phs/list/ http://www l.dnr.wa.gov/nhp/refdesk/plants.html http://wwwl.dnr.wa.gov/nhp/refdesk/pubs/wa ecological systems.pdf 8 2021 CF Program Application DRAFT http://www.cojefferson.wa.us/560/Conservation-Futures-Program Sound Steelhead.Before anthropogenic stresses occurred,Moon Valley was one of the most productive areas for salmon on the entire river.In the early 1900s,the river was artificially constrained against the far side of the valley in order to create pastureland.When this happened,the river's access to its floodplain was severed,and much of the existing salmon habitat was destroyed. The purchase of these proposed acquisitions will allow for restoration work to take place in Moon Valley.The implementation of this restoration project will restore habitat forming processes and features in the valley,bringing it back to most of its pre-disturbance potential for productivity.The area of the acquisitions proposed for funding will allow for a large meander belt and extensive riparian buffers to be placed in the valley.Reconnecting the river to its historic floodplain will create a number of desirable habitat features to the main river channel,and develop side channel and off channel habitat.Decreased flow velocities resulting from restoration will allow for spawning gravels to remain in the reach and reduce the scour potential of incubating salmon eggs. 10 a.Describe the extent and nature of current and planned agricultural use of the proposed acquisition,including any anticipated changes to that use once the property,or property right,is acquired with Conservation Futures funds. No agricultural uses are planned for either property as part of this project. Topsoil was removed from portions of the Baclawski parcels by a previous owner,and efforts to establish a fruit and nut orchard on that property have met challenges due to the drought-prone,rocky character of the remaining soil.Hay is currently cut from the field on the Pollard property at least once a year.Agriculture is largely incompatible with a naturally functioning Big Quilcene River floodplain as evidenced by efforts of the past to move,straighten,and dike the river channel. This project is the first step in recreating the historic floodway and channel migration zone of the Big Quilcene River. It will benefit habitat for ESA-listed salmon while lessening flood impacts in Quilcene, improving forest health and water quality,restoring native soils,improving hydrologic and geomorphic function,promoting carbon sequestration,and enhancing aquifer recharge and summertime flows. 10 b.Describe the current owner's record of implementing management practices that preserves and/or enhances soil,water quality,watershed function and wildlife habitat on the farm. N/A 10 c.Describe how the acquisition or proposed easement will likely preserve and/or enhance soil,water quality, watershed function and wildlife habitat. Acquisition of the proposed properties will allow for comprehensive restoration activities in Moon Valley.By restoring the Big Quilcene River's access to its historic floodplain in Moon Valley,the reach will once again become a sediment deposition/storage reach.The ability for floodwaters to deposit sediments in the reach will steadily enhance soil quality and also improve water quality downstream. The restored floodplain will serve its intended function in the watershed which include decreased flow velocities and improved/increased fish,wildlife, and riparian habitat. 11 a.Describe the extent and nature of current and planned silvicultural use of the proposed acquisition.Please cite or provide documentation of existing or planned silvicultural activities including forest management plan(s) or forest ecosystem restoration. No commercial silviculture is planned or anticipated.The Baclawski conservation easement precludes the pruning,cutting down,or other destruction or removal of live and dead trees and other vegetation within the conservation zones.Commercial harvest of any kind is unlikely to be consistent with the terms of the RCO Deed of Right for Salmon Recovery or other grant-related rules and requirements,and would go against the objectives of our habitat restoration project. 9 2021 CF Program Application DRAFT http://www.cojefferson.wa.us/560/Conservation-Futures-Program 11 b.Describe the current owner's record of implementing management practices that preserves and/or enhances soil,water quality,watershed function and wildlife habitat. N/A 11 c.Describe how the property acquisition or proposed easement will likely preserve and/or enhance soil,water quality,watershed function and wildlife habitat. Acquisition of the proposed properties will allow for comprehensive restoration activities in Moon Valley.Much of the acquisition area is pastureland,and by planting it with the appropriate native trees and shrubs,a vibrant riparian forest will once again exist in Moon Valley. The proposed restoration plan will lengthen the river channel though the valley,which will decrease flow velocities and encourage sediment deposition in the reach.A newly lengthened river channel and riparian forest will enhance soil and water quality, improve watershed function,and restore fish and wildlife habitat. 12 a. Describe how the proposed acquisition benefits primarily a_local area broad county area including the area served,the nature of the benefit,the jurisdictions involved,and the popula ions served. As a high priority restoration goal for the Big Quilcene River,this project will support the productivity of the lower river with benefits cascading into the estuary and Hood Canal.Restoring healthy sediment dynamics in Moon Valley will significantly reduce the ongoing issues with increased sediment deposition lower in the river where it flows though the community of Quilcene and enters Quilcene Bay. It is hoped that this project,in conjunction with a separate on-going floodplain restoration program in the lower mile of the river will lead to additional intervening acquisitions and/or conservation easements to ultimately lead to the best possible restoration outcomes ecologically for salmon,and also to meet the needs of the community for recreation, educational opportunities and economic vitality. 12 b. Is the project located in an area that is under-represented by CF funded Projects?Areas that Conservation Futures has not been able to support to date include Marrowstone Island, Toandos Peninsula, Dosewallips Valley, Bolton Peninsula, and the West End No 13.Describe the educational or interpretive opportunities that exist for providing public access,educational or interpretive displays(signage,kiosks,etc.)on the proposed site, including any plans to provide those improvements and any plans for public accessibility.2 The established WDFW pedestrian corridor provides public access along the Big Quilcene River in Moon Valley. After restoration is complete,a trail complete with educational signage is planned to be placed on the WDFW corridor to improve access and educational opportunities. 14. The proposed acquisition includes historic or culturally significant resources3 and _is registered with the National Register of Historic Places,or an equivalent program. is recognized locally has having historic or cultural resources. 2 The words"education"and"interpretation"are interpreted broadly by the CF Committee. 3 Cultural resources means archeological and historic sites and artifacts,and traditional religious ceremonial and social uses and activities of affected Indian Tribes and mandatory protections of resources under chapters 27.44 and 27.53 RCW 10 2021 CF Program Application DRAFT http://www.cojefferson.wa.us/560/Conservation-Futures-Program —is adjacent to and provides a buffer for a historic or cultural site. If affirmative in any of the above,please describe below, and cite or provide documentation of the historical or cultural resources. No known cultural resources are located in the acquisition areas.A cultural resource survey to further investigate this will be completed before any ground disturbing activities are started. O & M Stand Alone Projects 15.Applications for Operation and Maintenance funding only: Please describe in detail,the reason O&M funds are needed,proposed O&M activities,and how they protect resources cited in the original acquisition project.Attach additional information such as up-to-date stewardship plan,maps,field reports,work plan,budget,timeline,etc.,to support the application,if appropriate.0&M projects must address a compelling,immediate need. N/A Verification 16. Sponsors of applications that are approved for funding by the Board of County Commissioners are required to submit a brief progress report by October 30 every year for three years after the award is approved,or three years after the acquisition funds are disbursed to the applicant,whichever is later.The progress report must address any changes in the project focus or purpose,progress in obtaining matching funding,and stewardship and maintenance. Sponsors receiving O&M funds will also submit an annual report for each year that O&M funds are expended. The Committee will use the information to develop a project"report card"that will be submitted annually to the Board of County Commissioners. If this application is approved for funding,I understand the sponsor is required to submit pro ress r ports for three years and for any year in which O&M funds are expended. _Initials g/1 pe 17.If,three years after the date funding is approved by the Board of County Commissioners,the applicants have not obtained the required matching funds,the Committee may request the Board of County Commissioners to nullify their approval of funds,and may require the project to re-apply. 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Y O o. 14 t s / • i1 I / \ \ '.NN' , 1 Fg I \ �� -iL J `� II ti ti I i \ \\Cs-r \ \_\\ NN '2 A Appendix H:Landowner Acknowledgemei Appendix H: Landowner q. , Acknowledgement Form l,. , , Landowner Information Name of Landowner: Landowner Contact Information: x Mr. Title: First Name: MARK Last Name: BACLAWSKI Contact Mailing Address: 222 31st Avenue Seattle,WA 98122-6315 Contact E-Mail Address: j/✓, Q h K 6 44-. Contact Phone Number: A p 6 ^ 7 g 6-- q 5-ir 1 Property Address or Location: APN 702 233 005 (0014 y 0O0 Meaty-Veffey-OriVe a/en L oef ,e IO( Quilcene, WA 98376 1. (Landowner or Organization) is the legal owner of property described in this grant application. 2. I am aware that the project is being proposed on my property. 3. If the grant is successfully awarded, I will be contacted and asked to engage in negotiations. 4. My signature does not represent authorization of project implementation. 5. If I am affiliated with the.. roject sponsor, I will recuse myself from decisions made ,,by the oje. pons work or purchase my property /// ////9//5-- Landowner Signature Date Project Sponsor Information Project Name: Big Quilcene Key Pieces Project Applicant Contact Information: ❑ Mr. ® Ms. Title Project Manager First Name: Tami Last Name: Pokorny Mailing Address: E-Mail Address: Public Health tpokorny©co.jefferson.wa.us 615 Sheridan St 360/379-4498 Port Townsend WA 98368 Page 109 Appendix F: Landowner Acknowledgement Form Appendix F: Landowner Acknowledgement Form Landowner Information Name of Landowner: Mike and Cindy Pollard Landowner Contact Information: ❑ Mr. ❑ Ms. Title: First Name: Mike Last Name: Pollard Contact Mailing Address:330 Glen Logie Rd,Quilcene,WA 98376 Pb 150 )e 685 Contact E-Mail Address: ci o�.'e U {'trot h'►�2.e-(, 3Jo Property Address or Location: 330 Glen Logie Rd, Quilcene,WA 98376 1. Mike and Cindy Pollard are the legal owners of property described in this grant application. 2. I am aware that the project is being proposed on my property. 3. If the grant is successfully awarded,I will be contacted and asked to engage in negotiations. 4. My signature does not reprf ent au orization of project implementation. t -7 7-a5 !/j Landowner Signature Date Project Sponsor Information Project Name: Big Quilcene Moon Valley Reach Acquisition and Planning Project Applicant Contact Information: Hood Canal Salmon Enhancement Group ❑ Mr. ❑ Ms. Title First Name: Sarah Last Name: Heerhartz Mailing Address: PO Box 2169, Belfair,WA 98528 E-Mail Address:sarah@pnwsalmoncenter.org Manual 18, Salmon Recovery Grants• March 2017 REVIEW APPRAISER'S CERTIFICATE NO. 1 Agency: Hood Canal Salmon Enhancement Group Parcel No. 702233001 and 702233007 Owner: Cynthia and Michael Pollard Federal Aid No. N/A Project: N/A Map Sheet: N/A Map Approval Date: N/A Date of Last Revision: N/A From: Richard F. Duncan, MAI, RF Duncan and Associates, Inc. To: Hood Canal Salmon Enhancement Group Date of Review: October 9, 2020 The following appraisal has been made on the subject larger parcel: Appraiser Valuation Market Market Value Value of Damages Date Value— Value— Difference Property Before After Rights Project Project Acquired Chad C.Johnson, 7-17-20 $510,000 -0- $510,000 $510,000 -0- MAI WA Cert No. (Scenario 1) 1101662 and Leslee A. Gilmore,WA Cert. $510,000 $240,000 $270,000 $238,500 $31,500 No. 1101840 (Scenario 2) $510,000 $285,000 $225,000 $187,200 $37,800 (Scenario 3) Chad C. Johnson, 7-17-20 $510,000 $170,000 $340,000 $340,000 -0- MAI WA Cert No. (Scenario 4) 1101662 and Leslee A. Gilmore, WA Cert. No. 1101840 Appraisal Review Comments and Conclusions The Hood Canal Salmon Recovery Group proposes either a total acquisition (Scenario 1) or three partial acquisitions(Scenarios 2,3 and 4)which are described in the body of this review. Appraisal # 1 analyzes the impacts under Scenarios 1 thru 3, and Appraisal # 2 analyzes the impact under Scenario 4. I have analyzed all four scenarios in this review. Appraisals 1 and 2 are prepared consistent with the Uniform Standards for Professional Appraisal Practice (USPAP). Description of Subject Ownership The subject of the appraisal consists of a rural property located along at the terminus of Glen Logie Road, southerly of U.S. Highway 101 in the community of Quilcene in an unincorporated area of Richard F.Duncan,MAI Page 1 RF Duncan and Associates,Inc. Jefferson County, Washington. In the before situation, the subject site consists of a total area of 48.53 acres. The subject has approximately 2,400 lineal feet of frontage along the Big Quilcene River, which bisects the property in the southeasterly portion of the site. Of the 48.53 acres that comprise the subject property, approximately 8.53 acres is located southeasterly of the Big Quilcene River and does not have either legal or physical vehicular access. The portion of the subject property located along Glen Logie Road where the improvements are located is relatively level. The site then slopes downward drastically towards the center of the property where the pasture and area of the site that is associated with the Big Quilcene River is located. On the southeasterly side of the river the site then slopes upward dramatically in a southeasterly direction. According to the Jefferson County GIS maps, the subject site ranges in elevation from approximately 100 feet above sea level in the northwesterly corner of the site in the vicinity of Glen Logie Road down to a low of approximately 60 feet above sea level in the vicinity of the Big Quilcene River, then upward again in the southeasterly corner of the site to an elevation of approximately 240 feet above sea level. The subject has power and telephone and it has access to a shared well located on the parcel directly to the north of the property. In addition, the manufactured home is served by its own septic system. The subject is encumbered with a pedestrian travel and sport fishing easement that runs along the shoreline of the Big Quilcene River. This easement allows the general public to traverse along the bank of the Big Quilcene River for recreational purposes. The easement is limited to pedestrian access only. The Big Quilcene River is identified as a Shoreline of the State, and thus, development within 200 feet of this waterway is subject to the regulations of Jefferson County's Shoreline Master Program. Specifically, the Big Quilcene River in the vicinity of the subject property is classified as a"Conservancy" shoreline environment. The improved portion of the subject property located along Glen Logie Road is identified as being located in an area outside the 100-year and 500-year flood plain, as per Flood Insurance Rate Map, Number 530310884C, effective date June 7, 2019. The central and southerly portion of the subject property located along the valley floor is identified as being located in a Zone AE. Zone AE is defined "an area inundated by 1% annual chance flooding (usually an area of ponding), for which based flood elevations have been determined."Typical flood depths can range from one to three feet. Additionally, the area of the subject property associated with the Big Quilcene River along the southerly and easterly boundary of the site is classified as a floodway. Based on information within the Jefferson County GIS mapping system, the Big Quilcene River in the vicinity of the subject property is classified as a Conservancy Shoreline environment, which requires a building setback from the river of 150 feet. According to the Jefferson County GIS mapping system, portions of the site associated with the Big Quilcene River could be impacted by wetland/buffer areas. In addition, there are two potential wetland areas along the toe of the slope in the northerly portion of the site. In addition to the shared well located on the adjacent property, the subject has a water right for irrigation that draws from a spring associated with the Big Quilcene River. The Certificate of Water Right was recorded on January 10, 1973 under certification number S2-021227CL. According to the owner of the subject property, this allows for irrigation of the pasture and lawn areas located on the subject site. The subject is zoned Local Agricultural (AL-20), which allows agricultural development and residential uses at a minimum density of one home per 20 acres. Richard F.Duncan,MAI Page 2 RF Duncan and Associates,Inc The subject site is currently improved with a Fleetwood, one-story, wood frame manufactured single- family residence that was constructed in 1999. The owner of the subject property has not gone through the title elimination process for the manufactured home. Thus, this structure is assessed under its own personal property Assessor's Number (702233007). The manufactured home has 3 bedrooms, 1.75 baths and approximately 1,200 SF. The site is also improved with a five-bay equipment shed with a total area of 1,014 square feet. Four of bays are open with the fifth bay being enclosed.The building is of wood frame construction.The building is improved with a wood truss roof with a mixture of a composition shingle and metal cover. The four open bays have a dirt floor and the enclosed portion has a concrete floor. The enclosed area of the structure contains an area of 384 square feet. According to county records this structure was constructed in 1947. The site is also improved with a woodshed with an area of 160 square feet. In addition to the home, the property is also improved with an equipment shed and a woodshed. The appraisers concluded a highest and best use for the subject for residential development, coupled with ancillary agricultural/recreational use, and with the potential to develop the site with one additional home site in the future when demand dictates. The appraisers concluded a highest and best use as improved is for continued use as a single-family residence. In my opinion, the appraisers' highest and best use conclusions are reasonable and well supported in the appraisal. Valuation-Before Situation The appraisers applied the sales comparison approach to value the subject land. Neither the cost nor the income approaches were appropriate for this assignment, and they were not utilized. Since the building improvements are not impacted by the proposed partial acquisition, they were not valued in the appraisal, which is reasonable and appropriate. The appraisers analyzed four comparable sales in supporting the value of the subject land in the before situation. Due to the lack of sales of large parcels with river frontage in Jefferson County, the appraisers included sales from neighboring Thurston, Mason and Clallam counties along with one sale from Jefferson County. The sales range from approximately $8,168 to $9,653 per acre, prior to adjustments, and from $8,393 to $10,304 per acre, after applying adjustments for market appreciation since each sale. After comparing and contrasting the comparables to the subject for major value influencing characteristics including size, river frontage, location, water rights, and site utility, the appraisers concluded a value for the subject land of approximately $9,000 per acre or approximately $435,000® overall (48.53 acres x $9,000/acre) which is considered to be reasonable and well supported. The appraisers applied the cost approach to support the contributory value of the subject's manufactured home and other improvements of approximately $75,000 which is considered to be reasonable. The value of the subject as improved is approximately $510,000 ($435,000 (land) + $75,000 (improvements). Richard F.Duncan,MAI Page 3 RF Duncan and Associates,Inc. Proposed Acquisition and Remainder Description As indicted the Hood Canal Salmon Enhancement Group proposes three partial acquisition scenarios which are referred to as Scenarios Two,Three and Four, and each are discussed below. Scenario One is a total acquisition of the subject which has a total value of approximately $510,000. Scenario Two: Under Scenario Two, 26.50 acres located in the southerly portion of the property along the Big Quilcene River will be acquired. Under this scenario the northerly 22.03 acres (inclusive of all improvements) will be retained by the property owner. "'Pi According to the agency all of the subject's river frontage will be acquired and the remainder will have no river frontage or river access. (I note that the exhibit in the appraisal shows a small amount of river frontage in the remainder's northeasterly corner, however the appraisers indicate that they were instructed to assume that all of the subject's river frontage will be acquired.) The highest and best use of x. the remainder will be for continued use as a single-family residence. POTENTUI=CO NRIQN=RE;.-SCEM=RIO TWO Under Scenario Three 20.80 acres located in the southerly portion of the property along the Big Quilcene River will be acquired. Under this scenario 27.73 acres (inclusive of all improvements) will be retained by the property owner. According to the agency all of the subject's river frontage will be acquired and the remainder will *00 have no river frontage or river access. (I note that the exhibit . in the appraisal shows a small amount of river frontage in the remainder's northeasterly corner, however the appraisers II indicate that they were instructed to assume that all of subject's river frontage will be acquired.)The highest and best use of the remainder will be for continued use as a single- family residence. - 0 . 20.8 acres POTENTIAL ACOUtSITION AREA-SCENARIO THREE Richard F.Duncan,MAI Page 4 RF Duncan and Associates,Inc. Scenario Four This scenario includes the acquisition of all but 3.94 acres which is where the building improvements are located. The subject will no longer have frontage along the Big Quilcene River and the owners of the subject will no longer have legal/private access to the river from their property. Under this scenario, the residential building site area located along Glen Logie Road will remain » ». unchanged. In the after situation, the potential wetland areas and the areas that are impacted by flood plain issues are all located in the portion of the subject that will be acquired by the Hood Canal Salmon Enhancement Group and thus, do not - impact the subject property in the"after"scenario. There are views of the Big Quilcene River valley from the home located on the property, but direct views of the river are impacted by intervening vegetation over which the owner no longer has control. The highest and best use of the remainder will be for continued use as a single-family residence. Valuation of Remainder(s) Scenario Two (22.03-acre remainder) The appraisers analyzed four comparable land sales in analyzing the value of the subject remainder under this scenario.The sales range from approximately$4,017 to$9,091 per acre prior to adjustments, and from $4,248 per acre to $10,273 per acre after adjusting for market appreciation since each sale. After comparing and contrasting the comparables to the subject for major value influencing characteristics including size, location and site utility, the appraisers concluded a value for the subject land of approximately $7,500 per acre or approximately $165,000® overall (22.03 acres x$7,500/acre) which is considered to be reasonable and well supported. The subject's improvements will have the same value as in the before situation or approximately $75,000. The value of the remainder under Scenario Two is approximately $240,000 ($165,000 + $75,000). The value impacts under this scenario are allocated as follows: Value of Subject in Before Situation: $510,000 Value of Remainder: $240,000 Value Difference: $270,000 Value of Land Acquired (26.50 acres x $9,000/acre): $238,500® Damages ($270,000-$238,500): $31,500 Scenario Three (27.73-acre remainder) The appraisers analyzed four comparable land sales in analyzing the value of the subject remainder under this scenario.The sales range from approximately$4,017 to$9,091 per acre prior to adjustments, and from $4,248 per acre to $10,273 per acre after adjusting for market appreciation since each sale. After comparing and contrasting the comparables to the subject for major value influencing characteristics including size, location and site utility, the appraisers concluded a value for the subject land of approximately $7,500 per acre or approximately $210,000® overall (27.73 acres x $7,500/acre) which is considered to be reasonable and well supported. Richard F.Duncan,MAI Page 5 RFDuncan and Associates,Inc. The subject's improvements will have the same value as in the before situation or approximately $75,000. The value of the remainder under Scenario Three is approximately $285,000 ($210,000 + $75,000). The value impacts due to the proposed acquisition are allocated as follows: Value of Subject in Before Situation: $510,000 Value of Remainder: $285,000 Value Difference: $225,000 Value of Land Acquired (20.80 acres x $9,000/acre): $187,200® Damages ($225,000-$187,200): $37,800 Scenario Four (3.94-acre remainder) The appraisers analyzed four comparable sales of sites improved with manufactured homes in analyzing the value of the subject remainder under this scenario. The sales range from approximately $150,000 to $195,500, prior to adjustments, and from $155,775 to $210,971 after adjusting for market appreciation since each sale. After comparing and contrasting the comparables to the subject for major value influencing characteristics including size, quality and condition of home, location and site utility, the appraisers concluded a value for the subject under this scenario of approximately $170,000, which is considered to be reasonable and well supported. Deducting the $75,000 worth of improvements, the residual value to the land is approximately $95,000 or approximately $24,111 per acre for the 3.94- acre remainder site ($95,000/3.94 acre) which is significantly higher than $9,000 per acre as supported for the 48.53-acre subject in the before situation. The higher unit value in the after situation is due to the fact that very small sites tend to sell for much higher per acre land values than do larger 40+ acre parcels and not due to the proposed project. In my opinion, the much higher unit value for the remainder site is market reflective and it off-sets any damages to the loss of the subject's river frontage. The value impacts due to the proposed acquisition under this scenario are allocated as follows: Value of Subject in Before Situation: $510,000 Value of Remainder: $170,000 Value Difference: $340,000 Value of Land Acquired (40.59 acres x $8,376/acre): $340,000 Damages- none: -0- The appraisal of the remainder under each scenario is made subject to the hypothetical condition that the proposed acquisition has occurred when analyzing the value of each remainder. The appraisal has numerous other general assumptions and limiting conditions which are typical for similar appraisals in Washington State. There are some minor typographical errors in the appraisal but correction of these would not change its value conclusions. The title report identifies several easements and restrictions which are typical for competing properties. Richard F.Duncan,MAI Page 6 RF Duncan and Associates,Inc. Mmimmmw There are no tenant-owned realty items taken or affected. The appraisal and this review use the correct methods and techniques. The market data in the appraisal are adequate and appropriate to solve the appraisal problem. The conclusions of value reached in the appraisal and in this review are reasonable and fit the market evidence. In my opinion,tlhe appraisal report which is under review complies with the Uniform Standards of Professional Appraisal Practice (USPAP). Richard F. Duncan,MAI Page 7 RF Duncan and Associates,Inc. REVIEWER'S DETERMINATIONS OF VALUE NO. 1 Scenario One DETERMINED VALUE BEFORE PROJECT $510,000 DETERMINED VALUE AFTER PROJECT: -0- VALUE DIFFERENCE DETERMINED: $510,000 ESTIMATED JUST COMPENSATION: $510,000 Reviewer's Allocation of Just Compensation Acquisition: Land Acquired in Fee 48.53 acres x $9,000/acre: $435,000 Improvements Acquired: $75,000 Damages: -0- Special Benefits: -0- Total Just Compensation This Larger Parcel: $510,000 Scenario Two DETERMINED VALUE BEFORE PROJECT $510,000 DETERMINED VALUE AFTER PROJECT: $240,000 VALUE DIFFERENCE DETERMINED: $270,000 ESTIMATED JUST COMPENSATION: $270,000 Reviewer's Allocation of Just Compensation Acquisition: Land Acquired in Fee 26.50 acres x $9,000/acre $238,500 Improvements Acquired: -0- Damages: $31,500 Special Benefits: -0- Total lust Compensation This Larger Parcel: $270,000 Richard F.Duncan,MAI Page 8 RF Duncan and Associates,Inc. imiiimimmimr Scenario Three DETERMINED VALUE BEFORE PROJECT $510,000 DETERMINED VALUE AFTER PROJECT: $285,000 VALUE DIFFERENCE DETERMINED: $225,000 ESTIMATED JUST COMPENSATION: $225,000 Reviewer's Allocation of Just Compensation Acquisition: 1 Land Acquired in Fee 20.80 acres x $9,000/acre: $187,200 Improvements Acquired: -0- Damages: $37,800 Special Benefits: _0_ Total Just Compensation This Larger Parcel: $225,000 Scenario Four DETERMINED VALUE BEFORE PROJECT $510,000 DETERMINED VALUE AFTER PROJECT: $170,000 VALUE DIFFERENCE DETERMINED: $340,000 ESTIMATED JUST COMPENSATION: $340,000 Reviewer's Allocation of Just Compensation Acquisition: Land Acquired in Fee 40.59 acres x $8,376/acre $340,000 Improvements Acquired: -0- Damages: -0- Special Benefits: -0- Total Just Compensation This Larger Parcel: $340,000 Richard F.Duncan,MAI Page 9 RF Duncan and Associates,Inc. APPRAISAL REVIEW SALIENT INFORMATION Property Rights Appraised Unless specified otherwise in this review, the property rights appraised constitute the fee simple interest. Date of Value The effective date of the value opinion for the property in this review is 7-17-20 per Appraisal #1. Competency of Reviewer The undersigned reviewer has the knowledge and experience required to competently perform this review; detailed resumes are available upon written request. The undersigned reviewer is approved by the Federal Highway Administration (FHWA) and the Washington State Department of Transportation (WSDOT), lead agency for all eminent domain appraisal matters, to perform fee appraisal reviews for all public agencies and quasi-public agencies in Washington State. The undersigned reviewer is a state certified appraiser holding the General classification #1100496 and is on the WSDOT List of Approved Fee Reviewers. Purpose of this Review Overall,the purpose is to estimate the total Just Compensation due the owner for the taking of privately- owned real property for the public project identified. For a partial taking, this is done by: estimating the Value of the subject Larger Parcel in the Before Situation; estimating the Fai r Market Value Fair Market9 of the subject Larger Parcel in the After Situation; then subtracting the latter from the former. When a larger parcel's major improvements are unaffected by the taking/project other than simple cost to cure, the jurisdictional exception allows a Strip Appraisal Procedure wherein said improvements need not be valued. Use of this Review This review estimates Just Compensation due the owner and will be used to establish the first offer amount to be made to the owner by the agency. Scope of this Review The commonly recognized valuation methods and techniques most appropriate for valuing the subject Larger Parcel were performed in this review. This review involved a reasonably detailed inspection of the subject property, the subject neighborhood, and surrounding/competing neighborhoods. Sales and listings of competing properties were investigated before any conclusions of value were made. Unless otherwise stated above, the Income and Cost Approaches to value were not employed in this review because the Sales Comparison Approach is sufficient to solve the subject appraisal problem. Definition of the Larger Parcel The "Larger Parcel" is the parent parcel; it is the real property that is the subject of this review. It is that real property that has Unity of Use, Unity of Ownership, and Contiguity. Definition of Market Value Market Value,as defined by the Uniform Appraisal Standards for Federal Land Acquisitions, 2016 Edition, is: "...the amount in cash, or on terms reasonably equivalent to cash, for which in all probability the Richard F.Duncan,MAI Page 10 RF Duncan and Associates,Inc. property would have sold on the effective date of the appraisal, after a reasonable exposure time on the open competitive market, from a willing and reasonably knowledgeable seller to a willing and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due consideration to all available economic uses of the property at the time of the appraisal." Definition of Cash Equivalent A price expressed in terms of cash (money) as distinguished from a price which is expressed all or partly in terms of the face amount of notes or other securities which cannot be sold at their face amount. Market data in this review are compared to the subject on an all cash basis to satisfy the definition of Fair Market Value. Richard F.Duncan,MAI Page 11 RF Duncan and Associates,Inc. APPRAISAL REVIEW ASSUMPTIONS and LIMITING CONDITIONS 1.The property description supplied to the reviewer is assumed to be correct; 2.No surveys of the properties have been made by the reviewer and no responsibility is assumed in connection with such matters.Title is assumed merchantable and vested as noted herein; 3.No responsibility is assumed for matters of a legal nature affecting title to the properties,nor is any opinion of title rendered; 4.Information furnished by others is assumed to be true,correct,and reliable.A reasonable effort has been made to verify such information;however,no responsibility for its accuracy is assumed by the reviewer; 5.All mortgages,liens,encumbrances,leases,and servitudes have been disregarded unless so specified in review.The property is assumed to be under responsible ownership and competent management; 6.It is assumed that there are no hidden or unapparent conditions of the property,its subsoil,or its structures which would render it more or less valuable.No responsibility is assumed for such conditions or for engineering or testing which may be required to discover them; 7.Unless otherwise stated,the existence of hazardous material,which may or may not be present in or on the property,was not observed by the reviewer.The reviewer has no knowledge of the existence of such materials on or in the property.The reviewer,however,is not qualified to detect such substances.The presence of substances such as asbestos,urea- formaldehyde foam insulation,or other potentially hazardous/toxic materials may affect the value of the property.The value estimate in this review is predicated on the assumption that there is no such material on or in the property that would cause a loss in value.No responsibility is assumed for any such conditions,or for the expertise or engineering knowledge required to discover them.The client is urged to retain an expert in this field if desired; 8.Unless otherwise stated,no environmental impact studies were either requested or made in conjunction with this review,and the reviewer hereby reserves the right to alter,amend,revise,or rescind any of the value opinions based upon any subsequent environmental impact studies,research,or investigation; 9.It is assumed that there is full compliance with all applicable federal,state,and local environmental regulations and laws unless noncompliance is specified,defined,and considered in this review; 10.It is assumed that all applicable zoning and use regulations and restrictions have been complied with,unless nonconformity has been specified,defined,and considered in this review; 11.It is assumed that all required licenses,consents,or other legislative or administrative authority from any local,state,or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this review are based; 12.The reviewer will not be required to give testimony or appear in court because of having made this review unless arrangements have been previously made therefore, 13.Possession of this review or a copy thereof,does not carry with it the right of publication.It may not be used for any purpose by any person other than the client without the written consent of the reviewer and in any event,only with properly written qualification and only in its entirety; 14.Neither all nor any part of the contents of this review,or copy thereof,shall be conveyed to the public through advertising,public relations,news,sales,or any other media without written consent and approval of the reviewer.Nor shall the reviewer,client,firm,or professional organization of which the reviewer is a member be identified without the written consent of the reviewer; 15.The liability of the reviewer,employees,and subcontractors is limited to the client only.There is no accountability, obligation,or liability to any other party.If this review is placed in the hands of anyone other than the client,the client shall make such party aware of all limiting conditions and assumptions of the assignment and related discussions.The reviewer is in no way responsible for any costs incurred to discover or correct any deficiencies in the properties; 16.It is assumed that the public project which is the object of this review will be constructed in the manner proposed and in the reasonably foreseeable future.It is also assumed herein that the taken landscaping will not be required to be replaced on the remainder; 17.Acceptance and/or use of this review constitutes acceptance of the foregoing assumptions and limiting conditions. Richard F.Duncan,MAI Page 12 RFDuncan and Associates,Inc. CERTIFICATE OF REVIEW APPRAISER I, the review appraiser, certify to the best of my knowledge and belief: 1. The facts and data reported by the review appraiser and used in the review process are true and correct. 2. The analyses, opinions, and conclusions in this review report are limited only by the assumptions and limiting conditions stated in this review report, and are my personal, unbiased professional analyses opinion, and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report and I have no personal interest or bias with respect to the parties involved; 4. I have no bias with respect to the property that is the subject of this report or to the parties involved in this assignment. 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. My compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this review report. 7. My analyses, opinions, and conclusions were developed and this review report was prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP), with the Uniform Appraisal Standards for Federal Land Acquisitions(USFLA, the"Yellow Book") and with 49CFR Part 24. 8. I personally inspected the subject property of the appraisal under review and the comparable sales analyzed in the report. No one provided significant appraisal, appraisal review, or appraisal consulting assistance to the persons signing this certificate. I further certify that if this review is to be used in conjunction with a Federal Aid Highway Project or other federally funded project, none of the approved just compensation herein is ineligible for Federal reimbursement. Signature: Date Signed: 10-9-20 Richard F. Duncan, MAI, Review Appraiser, Washington State Certified Real Estate Appraiser: General, # 1100496 Richard F.Duncan,MAI Page 13 RF Duncan and Associates,Inc. CONCURRENCE and AUTHORIZATION for PAYMENT of JUST COMPENSATION The Hood Canal Salmon Enhancement Group does hereby indicate concurrence with the above certification and does authorize further action to proceed according to established procedures with the acquisition of the property. 1. I have no present or prospective personal interest in the property that is the subject of this report. 2. I have no personal interest or bias with respect to the parties involved. 3. My compensation is not contingent on an action or event resulting from this report. Authorized Representative of Hood Canal Salmon Enhancement Group Date Richard F.Duncan,MAI Page 14 RF Duncan and Associates,Inc. Review Appraiser's Qualifications Richard F. Duncan, MAI Experience: • Partner,The Granger Company • President, R.F. Duncan and Associates, Inc. • Fee Appraiser, Anderson Appraisal, Inc., Olympia, Washington • Real Estate Appraiser, Clark County, Department of Public Works • Real Estate Appraiser/Right-of-Way Agent, Washington State Department of Transportation • Real Property Manager, Phoenix Properties, Inc. Education: The Evergreen State College, Olympia, Washington Bachelor of Arts, Major—Business Management, 1987 Appraisal Education: Real Estate Courses: "Real Estate Law" "Real Estate Finance" "Real Estate Practices" "Principles of Real Estate Appraisal I" "Principles of Real Estate Appraisal II" "Uniform Standards of Professional Appraisal Practice" Appraisal Institute Courses: Successfully challenged "Real Estate Appraisal Principles" Successfully challenged "Basic Valuation Principles" "Capitalization Theory and Techniques Part A" "Capitalization Theory and Techniques Part B" "Report Writing and Valuation Analysis" "Advanced Applications" "Standards of Professional Practice Part A" "Standards of Professional Practice Part B" International Right-of-Way Association Courses: "Appraisal of Partial Acquisitions" "Principles of Real Estate Acquisition" "Engineering Plan Development and Application" "Ethics and the Right-of-Way Profession" "Communication in Real Estate Acquisition" "Bargaining Negotiations" Richard F.Duncan,MAI Page 15 RF Duncan and Associates,Inc. "Relocation Assistance" "Land Titles" National Highway Institute Courses: "Appraisal and Appraisal Review for Federal Aid Highway Programs" "Moving Cost Estimating" Business and Professional Organizations: • Member,Appraisal Institute • Certified Real Estate Appraiser(General)—State of Washington #1100496 Types of Appraisal Assignments: Apartments Eminent Domain Takings—Strip and Before/After Reports Funding Feasibility Studies for Governmental Projects(roads,parks,bike trails,etc.) Office Buildings Retail Special Benefit Studies Subdivisions Undeveloped Land Warehouses Wetlands/Open Space Appraisal Review Richard F.Duncan,MAI Page 16 RF Duncan and Associates,Inc. REVIEW APPRAISER'S CERTIFICATE NO. 1 Agency: Hood Canal Salmon Enhancement Group Parcel No. 702233004, 702233005, 702233006 Owner: Mark Baclawski Federal Aid No. N/A Project: N/A Map Sheet: N/A Map Approval Date: N/A Date of Last Revision: N/A From: Richard F. Duncan, MAI, RF Duncan and Associates, Inc. To: Hood Canal Salmon Enhancement Group Date of Review: September 17, 2020 The following appraisal has been made on the subject larger parcel: Appraiser Valuation Market Market Value Value of Damages Date Value— Value— Difference Property Before After Rights Project Project Acquired Chad C.Johnson, 7-17-20 $510,000 $220,000 $290,000 $183,200 $106,800 MAI WA Cert No. 1101662 and Leslee A. Gilmore,WA Cert. No. 1101840 Appraisal Review Comments and Conclusions Appraisal #1 is referred to as"the appraisal" herein. The appraisal is an Appraisal Report as defined by USPAP. The Hood Canal Salmon Recovery Group proposes a partial acquisition of the subject parcel. Description of Subject Ownership The subject of the appraisal consists of a rural property located along Glen Logie Road, southerly of U.S. Highway 101 in the community of Quilcene in an unincorporated area of Jefferson County, Washington. The subject site consists of three Jefferson County Assessor's parcels and contains a total area of 84.31 acres. The subject has approximately 1,750 lineal feet of frontage along the Big Quilcene River,which bisects the southeasterly corner of the site as well as traveling along its southerly boundary. The site is for the most part unimproved. There is an equipment shed located on the property with an area of 576 square feet. In addition, there is a cargo container and a small one-room cabin located on the site with an area of 196 square feet. The cabin is not affixed to a permanent foundation and the owner stated he can move its location easily. Thus, the cargo container and the cabin are considered personal property. The equipment shed is part of the real estate. Site coverage includes the buildings, an agricultural area that is currently planted with fruit and nut trees, and forested areas. Richard F.Duncan,MAI Page 1 RF Duncan and Associates,Inc. Vehicular access to the subject property is from Glen Logie Road. Due to its location and steep topography, access to the portion of the subject property located southerly of the Big Quilcene River is not feasible. The northerly portion of the subject is relatively level.The site then slopes downward drastically towards the center of the property where the agricultural portion and the area of the site that is associated with the Big Quilcene River is located. On the southerly side of the river the site then slopes upward dramatically in a southeasterly direction. According to the Jefferson County GIS maps, the subject site ranges in elevation from approximately 180 feet above sea level in the northwesterly corner of the site down to a low of approximately 75 feet above sea level in the vicinity of the Big Quilcene River, then upward again in the southeasterly corner of the site to an elevation of approximately 430 feet above sea level. Electrical and telephone service are extended to the subject property. The subject site is not served by public water or sanitary sewer service. The subject is improved with a well. Any residential development of the property will require that a septic system be installed. The subject is encumbered with a pedestrian travel and sport fishing easement that runs along the shoreline of the Big Quilcene River. This easement allows the general public to traverse along the bank of the Big Quilcene River for recreational purposes. The easement is limited to pedestrian access only. On February 2, 2010, the owner of the subject property entered into "Grant Deed of Conservation Easement" (Auditor's Number 549560) which created a conservation zone impacting approximately 18 acres of land on the northerly and southerly side of the Big Quilcene River. The Big Quilcene River is identified as a Shoreline of the State, and thus, development within 200 feet of this waterway is subject to the regulations of Jefferson County's Shoreline Master Program. Specifically, the Big Quilcene River in the vicinity of the subject property is classified as a"Conservancy" shoreline environment. The majority of the subject property is identified as being located in an area outside the 100-year and 500-year flood plain, as per Flood Insurance Rate Map, Number 530310884C, effective date June 7, 2019. The most southerly and easterly portions of the site located along the valley floor are identified as being located in a Zone AE. Zone AE is defined as"an area inundated by 1% annual chance flooding (usually an area of ponding), for which based flood elevations have been determined." Typical flood depths can range from one to three feet. Additionally, the area of the subject property associated with the Big Quilcene River along the southerly boundary of the site is classified as a floodway. According to the Jefferson County GIS mapping system, portions of the site associated with the Big Quilcene River could be impacted by wetland/buffer areas. In addition, there is a small potential wetland located in the central portion of the property. In addition to the well located on the property, the property owner indicated that he is allowed to draw water from a spring/pond located on the property for agricultural irrigation, though the appraisers were unable to find supporting documentation for the irrigation rights. The subject is zoned Local Agricultural (AL-20), which allows agricultural development and residential uses at a minimum density of one home per 20 acres. The appraisers concluded a highest and best use for the subject for development with one home site, coupled with ancillary agricultural/recreational use, and with the potential to develop the site with up to three additional home sites in the future when demand dictates. The appraisers concluded a highest Richard F.Duncan,MAI Page 2 RF Duncan and Associates,Inc. and best use as improved is to retain the equipment shed and develop the subject for residential use. In my opinion, the appraisers' highest and best use conclusions are reasonable and well supported in the appraisal. Valuation-Before Situation The appraisers applied the sales comparison approach to value the subject land. Neither the cost nor the income approaches were appropriate for this assignment, and they were not utilized. Since the building improvements are not impacted by the proposed partial acquisition, they were not valued in the appraisal, which is reasonable and appropriate. The appraisers analyzed four comparable sales in supporting the value of the subject land in the before situation. Due to the lack of sales of large parcels with river frontage in Jefferson County, the appraisers were forced to includes sales from neighboring Thurston, Mason and Clallam counties along with one sale from Jefferson County. The sales range from approximately $3,504 to $8,776 per acre, and from $3,846 to $9,829 per acre, after applying adjustments for market appreciation since each sale. After comparing and contrasting the comparables to the subject for major value influencing characteristics including size, river frontage, location and site utility, the appraisers concluded a value for the subject land of approximately $6,000 per acre or approximately $505,000® overall (84.31 acres x $6,000/acre) which is considered to be reasonable and well supported. The appraisers applied the cost approach to support the contributory value of the subject's 576 SF equipment shed of approximately $5,000 which is considered to be reasonable. The value of the subject as improved is approximately$510,000($505,000(land) + $5,000(equipment shed). Proposed Acquisition and Remainder Description The Hood Canal Salmon Enhancement Group proposes to acquire, in fee, approximately 30.53 acres located in the southerly portion of the site in the vicinity of the Big Quilcene River. The northerly 53.78 acres (inclusive of all improvements) will be retained by the property owner. After the proposed acquisition has been completed, the subject property will have an area of 53.78 acres, with no frontage along the Big Quilcene River, and the owners of the subject will no longer have legal/private access to the river from their property. The area of the site where the equipment shed is located is not within the acquisition area. The southerly approximately 18 acres that are part of the conservation easement that impacts the subject property are located in the acquisition area. Thus, in the"After"scenario the conservation easement is no longer impacting the subject property. The appraisers conclude that the highest and best use of the remainder site as vacant is for the use of the site to support development of one home, with ancillary agricultural/recreational use, with the potential to develop the site with a second home site in the future when demand dictates.The appraisers conclude that the highest and best use of the remainder as improved is to retain the equipment building and incorporate this structure into the development of the remainder site with a residential use. In my opinion, the appraisers' highest and best use conclusions for the remainder are reasonable and well supported. Valuation of Remainder The appraisers analyzed four comparable sales in analyzing the value of the subject remainder. The sales range from approximately $3,026 to $5,885 per acre prior to adjustments, and from $3,337 per acre to $6,430 per acre after adjusting for market appreciation since each sale. After comparing and Richard F.Duncan,MAI Page 3 RF Duncan and Associates,Inc. contrasting the comparables to the subject for major value influencing characteristics including size, location and site utility, the appraisers concluded a value for the subject land of approximately $4,000 per acre or approximately $215,000® overall (53.78 acres x $4,000/acre) which is considered to be reasonable and well supported. The subject's equipment shed has the same value as in the before situation or $5,000. The total value of the remainder is approximately $220,000 ($215,000(land) +$5,000(shed). The value impacts due to the proposed acquisition are allocated as follows: Value of Subject in Before Situation: $510,000 Value of Remainder: $220,000 Value Difference: $290,000 Value of Land Acquired (30.53 acres x $6,000/acre): $183,200® Damages ($290,000-$183,200): $106,800 The appraisal is made subject to the hypothetical condition that the proposed acquisition has occurred when analyzing the value of the remainder. The appraisal has numerous other general assumptions and limiting conditions which are typical for similar appraisals in Washington State. There are some minor typographical errors in the appraisal but correction of these would not change its value conclusions. The title report identifies several easements and restrictions which are typical for competing properties. There are no tenant-owned realty items taken or affected. The appraisal and this review use the correct methods and techniques. The market data in the appraisal are adequate and appropriate to solve the appraisal problem. The conclusions of value reached in the appraisal and in this review are reasonable and fit the market evidence. In my opinion,the appraisal report which is under review complies with the Uniform Standards of Professional Appraisal Practice (USPAP). Richard F.Duncan,MAI Page 4 RF Duncan and Associates,Inc. REVIEWER'S DETERMINATION OF VALUE NO. 1 DETERMINED VALUE BEFORE PROJECT $510,000 DETERMINED VALUE AFTER PROJECT: $220,000 VALUE DIFFERENCE DETERMINED: $290,000 ESTIMATED JUST COMPENSATION: $290,000 Reviewer's Allocation of Just Compensation Acquisition: Land Acquired in Fee 30.53 acres x $6,000/acre: $183,200 Improvements Acquired: -0- Damages: $106,800 Special Benefits: -0- Total Just Compensation This Larger Parcel: $290,000 Richard F.Duncan,MAI Page 5 RF Duncan and Associates,Inc. APPRAISAL REVIEW SALIENT INFORMATION Property Rights Appraised Unless specified otherwise in this review, the property rights appraised constitute the fee simple interest. Date of Value The effective date of the value opinion for the property in this review is 7-17-20 per Appraisal #1. Competency of Reviewer The undersigned reviewer has the knowledge and experience required to competently perform this review; detailed resumes are available upon written request. The undersigned reviewer is approved by the Federal Highway Administration (FHWA) and the Washington State Department of Transportation (WSDOT), lead agency for all eminent domain appraisal matters, to perform fee appraisal reviews for all public agencies and quasi-public agencies in Washington State. The undersigned reviewer is a state certified appraiser holding the General classification #1100496 and is on the WSDOT List of Approved Fee Reviewers. Purpose of this Review Overall, the purpose is to estimate the total Just Compensation due the owner for the taking of privately- owned real property for the public project identified. For a partial taking, this is done by: estimating the Fair Market Value of the subject Larger Parcel in the Before Situation; estimating the Fair Market Value of the subject Larger Parcel in the After Situation; then subtracting the latter from the former. When a larger parcel's major improvements are unaffected by the taking/project other than simple cost to cure, the jurisdictional exception allows a Strip Appraisal Procedure wherein said improvements need not be valued. Use of this Review This review estimates Just Compensation due the owner and will be used to establish the first offer amount to be made to the owner by the agency. Scope of this Review The commonly recognized valuation methods and techniques most appropriate for valuing the subject Larger Parcel were performed in this review. This review involved a reasonably detailed inspection of the subject property, the subject neighborhood, and surrounding/competing neighborhoods. Sales and listings of competing properties were investigated before any conclusions of value were made. Unless otherwise stated above, the Income and Cost Approaches to value were not employed in this review because the Sales Comparison Approach is sufficient to solve the subject appraisal problem. Definition of the Larger Parcel The "Larger Parcel" is the parent parcel; it is the real property that is the subject of this review. It is that real property that has Unity of Use, Unity of Ownership, and Contiguity. Definition of Market Value Market Value,as defined by the Uniform Appraisal Standards for Federal Land Acquisitions, 2016 Edition, is: "...the amount in cash, or on terms reasonably equivalent to cash, for which in all probability the property would have sold on the effective date of the appraisal, after a reasonable exposure time on Richard F.Duncan,MAI Page 6 RF Duncan and Associates,Inc. the open competitive market, from a willing and reasonably knowledgeable seller to a willing and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due consideration to all available economic uses of the property at the time of the appraisal." Definition of Cash Equivalent A price expressed in terms of cash (money) as distinguished from a price which is expressed all or partly in terms of the face amount of notes or other securities which cannot be sold at their face amount. Market data in this review are compared to the subject on an all cash basis to satisfy the definition of Fair Market Value. Richard F. Duncan,MAI Page 7 RF Duncan and Associates,Inc. APPRAISAL REVIEW ASSUMPTIONS and LIMITING CONDITIONS 1.The property description supplied to the reviewer is assumed to be correct; 2.No surveys of the properties have been made by the reviewer and no responsibility is assumed in connection with such matters.Title is assumed merchantable and vested as noted herein; 3.No responsibility is assumed for matters of a legal nature affecting title to the properties,nor is any opinion of title rendered; 4.Information furnished by others is assumed to be true,correct,and reliable.A reasonable effort has been made to verify such information;however,no responsibility for its accuracy is assumed by the reviewer; 5.All mortgages,liens,encumbrances,leases,and servitudes have been disregarded unless so specified in review.The property is assumed to be under responsible ownership and competent management; 6.It is assumed that there are no hidden or unapparent conditions of the property,its subsoil,or its structures which would render it more or less valuable.No responsibility is assumed for such conditions or for engineering or testing which may be required to discover them; 7.Unless otherwise stated,the existence of hazardous material,which may or may not be present in or on the property,was not observed by the reviewer.The reviewer has no knowledge of the existence of such materials on or in the property.The reviewer,however,is not qualified to detect such substances.The presence of substances such as asbestos,urea- formaldehyde foam insulation,or other potentially hazardous/toxic materials may affect the value of the property.The value estimate in this review is predicated on the assumption that there is no such material on or in the property that would cause a loss in value.No responsibility is assumed for any such conditions,or for the expertise or engineering knowledge required to discover them.The client is urged to retain an expert in this field if desired; 8.Unless otherwise stated,no environmental impact studies were either requested or made in conjunction with this review,and the reviewer hereby reserves the right to alter,amend,revise,or rescind any of the value opinions based upon any subsequent environmental impact studies,research,or investigation; 9.It is assumed that there is full compliance with all applicable federal,state,and local environmental regulations and laws unless noncompliance is specified,defined,and considered in this review; 10.It is assumed that all applicable zoning and use regulations and restrictions have been complied with,unless nonconformity has been specified,defined,and considered in this review; 11.It is assumed that all required licenses,consents,or other legislative or administrative authority from any local,state,or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this review are based; 12.The reviewer will not be required to give testimony or appear in court because of having made this review unless arrangements have been previously made therefore, 13.Possession of this review or a copy thereof,does not carry with it the right of publication.It may not be used for any purpose by any person other than the client without the written consent of the reviewer and in any event,only with properly written qualification and only in its entirety; 14.Neither all nor any part of the contents of this review,or copy thereof,shall be conveyed to the public through advertising,public relations,news,sales,or any other media without written consent and approval of the reviewer.Nor shall the reviewer,client,firm,or professional organization of which the reviewer is a member be identified without the written consent of the reviewer; 15.The liability of the reviewer,employees,and subcontractors is limited to the client only.There is no accountability, obligation,or liability to any other party.If this review is placed in the hands of anyone other than the client,the client shall make such party aware of all limiting conditions and assumptions of the assignment and related discussions.The reviewer is in no way responsible for any costs incurred to discover or correct any deficiencies in the properties; 16.It is assumed that the public project which is the object of this review will be constructed in the manner proposed and in the reasonably foreseeable future.It is also assumed herein that the taken landscaping will not be required to be replaced on the remainder; 17.Acceptance and/or use of this review constitutes acceptance of the foregoing assumptions and limiting conditions. Richard F.Duncan,MAI Page 8 RF Duncan and Associates,Inc CERTIFICATE OF REVIEW APPRAISER I, the review appraiser, certify to the best of my knowledge and belief: 1. The facts and data reported by the review appraiser and used in the review process are true and correct. 2. The analyses, opinions, and conclusions in this review report are limited only by the assumptions and limiting conditions stated in this review report, and are my personal, unbiased professional analyses opinion, and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report and I have no personal interest or bias with respect to the parties involved; 4. I have no bias with respect to the property that is the subject of this report or to the parties involved in this assignment. 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. My compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this review report. 7. My analyses, opinions, and conclusions were developed and this review report was prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP), with the Uniform Appraisal Standards for Federal Land Acquisitions(USFLA, the"Yellow Book") and with 49CFR Part 24. 8. I personally inspected the subject property of the appraisal under review and the comparable sales analyzed in the report. No one provided significant appraisal, appraisal review, or appraisal consulting assistance to the persons signing this certificate. I further certify that if this review is to be used in conjunction with a Federal Aid Highway Project or other federally funded project, none of the approved just compensation herein is ineligible for Federal reimbursement. Signature: Date Signed: 9-17-20 Richard F. Duncan, MAI, Review Appraiser, Washington State Certified Real Estate Appraiser: General, # 1100496 Richard F.Duncan,MAI Page 9 RF Duncan and Associates,Inc. CONCURRENCE and AUTHORIZATION for PAYMENT of JUST COMPENSATION The Hood Canal Salmon Enhancement Group does hereby indicate concurrence with the above certification and does authorize further action to proceed according to established procedures with the acquisition of the property. 1. I have no present or prospective personal interest in the property that is the subject of this report. 2. I have no personal interest or bias with respect to the parties involved. 3. My compensation is not contingent on an action or event resulting from this report. Authorized Representative of Hood Canal Salmon Enhancement Group Date Richard F.Duncan,MAI Page 10 RF Duncan and Associates,Inc. Review Appraiser's Qualifications Richard F. Duncan, MAI Experience: • Partner,The Granger Company • President, R.F. Duncan and Associates, Inc. • Fee Appraiser, Anderson Appraisal, Inc., Olympia, Washington • Real Estate Appraiser, Clark County, Department of Public Works • Real Estate Appraiser/Right-of-Way Agent, Washington State Department of Transportation • Real Property Manager, Phoenix Properties, Inc. Education: The Evergreen State College, Olympia, Washington Bachelor of Arts, Major—Business Management, 1987 Appraisal Education: Real Estate Courses: "Real Estate Law" "Real Estate Finance" "Real Estate Practices" "Principles of Real Estate Appraisal I" "Principles of Real Estate Appraisal II" "Uniform Standards of Professional Appraisal Practice" Appraisal Institute Courses: Successfully challenged "Real Estate Appraisal Principles" Successfully challenged "Basic Valuation Principles" "Capitalization Theory and Techniques Part A" "Capitalization Theory and Techniques Part B" "Report Writing and Valuation Analysis" "Advanced Applications" "Standards of Professional Practice Part A" "Standards of Professional Practice Part B" International Right-of-Way Association Courses: "Appraisal of Partial Acquisitions" "Principles of Real Estate Acquisition" "Engineering Plan Development and Application" "Ethics and the Right-of-Way Profession" "Communication in Real Estate Acquisition" "Bargaining Negotiations" Richard F.Duncan,MAI Page 11 RF Duncan and Associates,Inc. "Relocation Assistance" "Land Titles" National Highway Institute Courses: "Appraisal and Appraisal Review for Federal Aid Highway Programs" "Moving Cost Estimating" Business and Professional Organizations: • Member, Appraisal Institute • Certified Real Estate Appraiser(General)—State of Washington #1100496 Types of Appraisal Assignments: Apartments Eminent Domain Takings—Strip and Before/After Reports Funding Feasibility Studies for Governmental Projects (roads,parks, bike trails, etc.) Office Buildings Retail Special Benefit Studies Subdivisions Undeveloped Land Warehouses Wetlands/Open Space Appraisal Review Richard F.Duncan,MAI Page 12 RF Duncan and Associates,Inc. Appendix B Application Sponsor Private Non- Profit Organization Attachments Applicant Resolution/Authorization Organization Name:Hood Canal Salmon Enhancement Group Project Name:Moon Valley Acquisitions This resolution/authorization authorizes the person(s)identified below(in Section 2)to act as the authorized representative/agent on behalf of our organization and to legally bind our organization with respect to the above Project(s)for which we seek grant funding assistance managed through Jefferson County. WHEREAS,grant assistance is requested by our organization to aid in financing the cost of the Project(s) referenced above; NOW,THEREFORE, BE IT RESOLVED that 1. Our organization has applied for or intends to apply for funding assistance managed by Jefferson County for the above"Project" 2. Our organization authorizes the following persons or persons holding specified titles/positions(and subsequent holders of those titles/positions)to execute the following documents binding our organization on the aboveprojects: rant Document Name of Signatory or Title of Person Authorized to Sign Grant application (submission thereof) Mendy Harlow—Executive Director Project contact(day-to-day i,us Johnson—Project Manager administering of the grant and communicating with Jefferson County) Jefferson County Grant Agreement Mendy Harlow—Executive Director Agreement amendments Mendy Harlow—Executive Director Authorizing property and real estate Mendy Harlow—Executive Director documents(Notice of Grant Deed of Right or Assignment of Rights if applicable).These are items that are typical recorded on the property with the county. The above persons are considered an"authorized representative(s)/agent(s)"for purposes of the documents indicated.Our organization shall comply with a request from Jefferson County to provide documentation of persons who may be authorized to execute documents related to the grant 3. Our organization acknowledges and warrants,after conferring with its legal counsel,that its authorized representatives)/agent(s)have full legal authority to act and sign on behalf of the organization for their assigned role/document 4. Grant assistance is contingent on a signed Agreement Entering into any Agreement with Jefferson County is purely voluntary on our part. 5. Any grant assistance received will be used for only direct eligible and allowable costs that are reasonable and necessary to implement the project(s)referenced above. 6. Our organization acknowledges that if it receives grant funds managed by Jefferson County,the County will pay us on only a reimbursement basis.We understand reimbursement basis means that we will only request payment from the County after we incur grant eligible and allowable costs and pay them. 7 Our organization acknowledges that any property acquired with grant assistance must be dedicated for the purposes of the grant in perpetuity unless otherwise agreed to in writing by our organization and the County.We agree to dedicate the property in a signed"Deed of Right"for fee acquisitions,or an "Assignment of Rights"for other than fee acquisitions to be recorded on the title of the property with the county auditor.Our organization acknowledges that any property acquired in fee title must be immediately made available to the public unless otherwise provided for in policy,the Agreement,or authorized in writing by the County. 8. This resolution/authorization is deemed to be part of the formal grant application to Jefferson County. 9. Our organization warrants and certifies that this resolution/authorization was properly and lawfully adopted following the requirements of our organization and applicable laws and policies and that our organization has full legal authority to commit our organization to the warranties,certifications, promises and obligations set forth herein. This resolution, authorization is signed and approved on behalf of the resolving body of our organization by the following autl rized member(s): Signed Title �,, ( f 1 7 O S B ik m au 1� i 2 Date 3 1 f'_7 f Z On File at ft Obi E ram+ L •r11M 1ditl1/4r-L114a /v t )(,W This Applicant Resolution/Authorization was adopted by our organization during the meeting held: (Local Governments and Nonprofit Organizations Only): Location: _-- Date: 3 16 24 INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY DISTRICT DIRECTOR 2 CUPANIA CIRCLE MONTEREY PARK, CA 91755-7406 Employer Identification Number: Date: ( ;! 91-1518294 Case Number: 955332004 HOOD CANAL SALMON ENHANCEMENT GROUP Contact Person: ATTN KATHERINE 0 MARSH TYRONE THOMAS PO BOX 7 Contact Telephone Number: BRINNON, WA 98320-0007 (213) 894-2289 Our Letter Dated: January 1992 Addendum Applies: No Dear Applicant: _ This modifies our letter of the above date in which we stated that you would be treated as an organization that is not a private foundation until the expiration of your advance ruling period. Your exempt status under section 501(a) of the Internal Revenue Code as an organization described in section 501 (c) (3) is still in effect. Based on the information you submitted, we have determined that you are not a private foundation within the meaning of section 509 (a) of the Code because you are an organization of the type described in section 509(a) (1) and 170 (b) (1) (A) (vi) . Grantors and contributors may rely on this determination unless the Internal Revenue Service publishes notice to the contrary. However, if you lose your section 509 (a) (1) status, a grantor or contributor may not rely on this determination if he or she was in part responsible for, or was aware of, the act or failure to act, or the substantial or material change on the part of the organization that resulted in your loss of such status, or if he or she acquired knowledge that the Internal Revenue Service had given notice that you would no longer be classified as a section 509 (a) (1) organization. If we have indicated in the heading of this letter that an addendum applies, the addendum enclosed is an integral part of this letter. Because this letter could help resolve any questions about your private foundation status, please keep it in your permanent records. If you have any questions, please contact the person whose name and telephone number are shown above. Sincerely yours, efr_Avrtzunz-,---- Richard R. Orosco District Director Letter 1050 (DO/CG) HCSEG 2020 Budget $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 57,000 In Thousands FY 2019 FY 2020 REVENUE PRIOR YEAR PROPOSED Fundraisers and events $ 109,806.73 $ 100,000.00 USFWS operating funds $ 165,952.00 $ 150,000.00 WDFW operating funds $ 212,402.00 $ 200,0013.00 RCO-Lower Big Quilcene Master plan $ 107,517.00 $ 190,000.00 USFWS-Lower Big Quilcene Master Plan $ 2,725.84 $ 500.00 Floodplains by Design-Lower Big Quilcene Master Plan and Moon Valley $ 217,901.00 $ 1,000,000.00 RCO-Big Quilcene Moon Valley acquisition and planning $ 28,170.70 $ 300,000.00 USFWS-Big Quilcene Moon Valley $ 24,851.66 $ 50,000.00 RCO-IMW-Lower Big Beef Creek Restoration-Phase 3 $ 236,054.69 $ 20,003.00 WDFW ALEA-Forage Fish Assessment $ 3,958.55 $ 1,000.00 Union River Griswold Culvert replacement $ - $ 106,601.00 WSDA-Knotweed Control $ 22,845.00 $ 8,000.00 RCO-Riparian Enhancement Project $ 130,431.09 $ 100,000.00 NFWF-Cooperative Weed Management Area $ 5,821.00 $ 14,000.00 WDFW ALEA-Summer Chum Outmigration $ 25,769.00 $ 26,000.00 RCO-Seabed(Creek Bridge $ 112,234.25 $ 1,500,000.00 WDFW ALEA-Steelhead Project $ 7,000.00 $ 7,000.00 WDFW ALEA-Summer Chum Project $ 3,907.07 $ 3,000.00 NOAA Steelhead Project $ 21,186.54 $ 21,000.00 Scholarship Fundraiser $ 8,093.00 $ 9,000.00 Camp Registrations $ 2,017.48 $ 1,000.00 Farm income $ 4,809.00 $ 5,000.00 Farm Sponsorships $ 2,162.00 $ 4,000.00 Rental income $ 21,275.00 $ 14,000.00 Membership $ 3,141.50 $ 4,000.00 Crew Income $ 32,000.00 $ 50,000.00 Other Income $ 3,953.76 $ 4,000.00 DNR Hahobas Camp $ 160,000.00 $ - USFWSNCW,WWRP,ESRP and SRFB-Big Beef Creek Acquisition $ 2,828,264.00 i$ 535,000.00I ESRP-Dud(abush Estuary Design support $ 60,355.00 $ 108,000.00 Tahuya River Estuary Preliminary Design $ 4,688,09•$ 12,000.00{ Union River Reach Restoration Planning $ 106,601.00 $ 10,000.00 Tahuya River Watershed Assessment $ 110,984.45 $ 109,000.00 RCO-Riparian Stewardship(Applied for,not yet received) $ - $ 10,000.00 RCO-Duckabusb Estuary Restoration Design and Acquisition(new grant) $ - $ 1,000,000.00 RCO-Moon Valley Reach Preliminary Design(new grant) $ 289,000.00 TOTAL, 54,7ftl,.R�8.-](1 SS,JG I,It)ltlll EXPENSES •FY 2020 PROPOSED ;r FY 2019 PRIOR YEAR ".aor ";'S'. )4 +' N 31. lie r} $4,200 $4,400 $4,600 $4,800 $5,000 $5,200 $5400 $5,600 $5,800 In Thousands FY 2019 FY 2020 EXPENSES PRIOR YEAR PROPOSED Salaries 448,076.50 475,000.00 Benefits 67,018.00 70,000.00 Payroll taxes 51,003.00 52,000.00 Utilities 11,473.00 12,000.00 Travel and meetings 3,923.82 10,000.00 A-133 Audit 11,665.00 13,000.00 Office Supplies and Equipment 4,171.15 4,200.00 Printer lease and maintenance 13,887.76 14,000.00 Farm supplies and maintenance 6,136.90 7,000.00 Facilities Maintenance 25,446.00 15,000.03 Vehicle maintenance 3,901.25 5,000.00 Membership Dues,licenses and subscriptions 8,866.29 10,000.00 Staff Development and training 5,211.00 3,000.00 Legal fees 0.00 2,000.00 Insurance 15,304.17 16,000.00 Volunteer/Donor gifts and Prizes 1,521.21 2,000.00 Postage 1,132.10 700.00 IT Services 0.00 1,000.00 Web fees(webshe,meeting space,etc.) 250.00 250.00 Trail maintenance 485.92 500.00 Outreach Supplies and Events 19,247.96 20,000.00 Education supplies 322.65 1,500.00 Research Supplies 22,995.00 15,000.00 Data Analysis 16,612.62 15,000.00 AmerlCorps 27,200.00 30,000.00 Internship Stipends and Salaries 24,003.76 20,000.00 Scholarships 4,500.00 3,000.00 Restoration Design and Construction Services 724,183.77 3,500,000.00 Advertising 2,706.40 6,000.00 Grounds Maintenance and Equipment 2,000.00 6,000.60 WCC Crew 120,669.55 160,000.00 Interest Expense 95,136.26 100,003.00 Land acquisitions 2,930,000.00 1,000,000.00 r TOTALS $4,669,057.04 $5,589,150.00 Page 2 of 2 E E o E ai g o m I E " E _ 10E , E E o m o ocu ✓ Ece E �? 3nc@ _� E ° co �_E c ° °0 oOo on o N .Ol N CvC CN .mac 0• _ L co C ° cN y o W .0 o, r E v E E 2 2 2 2 2 2 n o o n o c c ry m ~ . ry m O1 A m n ' • oo a vi J, m o0 I nv N m L N i° ttDn w ry `D m Fsi if 1Y1 6 O m m a m ry ' M at (NI (NI .--1 u1 C) 0o m c.0 N Lr, O I� e-I ,-I ;, Is, 01 0 01 m 0 v I, at m I. 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Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted. our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 1 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of as of December 31, 2019, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Report on Summarized Comparative Information We have previously audited the Hood Canal Salmon Enhancement Group's 2018 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated November 18, 2019. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2018, is consistent, in all material respects, with the audited financial statements from which it has been derived. Other Matters Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 15, 2020, on our consideration of Hood Canal Salmon Enhancement Group's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on Hood Canal Salmon Enhancement Group's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Hood Canal Salmon Enhancement Group's internal control over financial reporting and compliance. C&Attila.11)14),I Chieretc Clarke Whitney, CPA, Inc. Bremerton, Washington November 15,2020 2 HOOD CANAL SALMON ENHANCEMENT GROUP STATEMENTS OF FINANCIAL POSITION DECEMBER 31,2019 AND 2018 2019 2018 Assets Current assets Cash and cash equivalents $ 19,180 $ 29,588 Restricted and reserved cash 125,377 101,645 Contracts and grants receivable, net of allowance for doubtful contracts of$0 (2019) and $0 (2018) 164,685 182,801 Costs in excess of billings 154,468 12,084 Prepaid expenses 21,600 12,800 Total current assets 485,310 338,918 Endowment investments 75,623 64,198 Property and equipment, net 7,917,734 4,992,950 Total assets $ 8,478,667 $ 5,396,066 Liabilities and net assets Current liabilities Accounts payable $ 336,697 $ 236,330 Accrued liabilities 50,879 44,315 Lease deposit 100 100 Credit cards 12,737 2,748 Current portion of long-term debt 46,277 41,400 Total current liabilities 446,690 324,893 Long-term debt 1,062,393 1,001,444 Total liabilities 1,509,083 1,326,337 Net assets Without donor restrictions 1,323,329 1,382,323 With donor restrictions 5,646,255 2,687,406 Total net assets 6,969,584 4,069,729 Total liabilities and net assets $ 8,478,667 5,396,066 See the accompanying notes to the financial statements and independent auditor's report. 3 HOOD CANAL SALMON ENHANCEMENT GROUP STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31,2019 Without With Donor Donor 2019 Restrictions Restrictions Total Revenues Revenues, gains and support Grants and contracts $ - $ 4,787,795 $ 4,787,795 Contributions 16,501 88,707 105,208 Dues-membership 3,142 - 3,142 Program income 9,564 - 9,564 Investment income (loss) 5 11,425 11,430 Rental income 21,700 - 21,700 Other income 1,419 - 1,419 Total revenues, gains and support 52,331 4,887,927 4,940,258 Sales Sales revenue 8,913 - 8,913 Cost of goods sold (9,215) - (9,215) Gross profit (302) - (302) Net assets released from restrictions Satisfaction for use restrictions 1,929,078 (1,929,078) - Total revenues 1,981,107 2,958,849 4,939,956 Expenses Program services 1,922,002 - 1,922,002 Management and general 116,083 - 116,083 Fundraising 2,016 - 2,016 Total expenses 2,040,101 - 2,040,101 Change in net assets (58,994) 2,958,849 2,899,855 Net assets, beginning of year 1,382,323 2,687,406 4,069,729 Net assets, end of year $ 1,323,329 $ 5,646,255 $ 6,969,584 See the accompanying notes to the financial statements and independent auditor's report. 4 HOOD CANAL SALMON ENHANCEMENT GROUP STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31,2018 Without With Donor Donor 2018 Restrictions Restrictions Total Revenues Revenues, gains and support Grants and contracts $ - $ 2,245,673 $ 2,245,673 Contributions 41,551 10,189 51,740 Dues-membership 1,738 - 1,738 Program income 57,354 - 57,354 Investment income (loss) - (4,304) (4,304) Rental income 10,800 - 10,800 Other income and gains 105 - 105 Total revenues, gains and support 111,548 2,251,558 2,363,106 Sales Sales revenue 8,984 - 8,984 Cost of goods sold (6,813) - (6,813) Gross profit 2,171 - 2,171 Net assets released from restrictions Satisfaction for use restrictions 1,312,041 (1,312,041) - Total revenues 1,425,760 939,517 2,365,277 Expenses Program services 1,352,516 - 1,352,516 Management and general 95,947 - 95,947 Fundraising - - - Total expenses 1,448,463 - 1,448,463 Change in net assets ( 22,703) 939,517 916,814 Net assets, beginning of year 1,405,026 1,747,889 3,152,915 Net assets, end of year $ 1,382,323 $ 2,687,406 $ 4,069,729 See the accompanying notes to the financial statements and independent auditor's report. 5 HOOD CANAL SALMON ENHANCEMENT GROUP STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED DECEMBER 31,2019 2019 Program Management Fundraising Total Staff salaries $ 413,663 $ 50,202 $ - $ 463,865 Staff payroll taxes 44,456 5,383 - 49,839 Staff payroll benefits 58,703 7,124 - 65,827 Total salaries and related expenses 516,822 62,709 - 579,531 Advertising 2,706 - - 2,706 Bad debt 313 - - 313 Bank charges - 3,027 - 3,027 Contract labor 157,951 - - 157,951 Dues, licenses and subscriptions 9,416 1,005 - 10,421 Education and outreach 21,964 - 2,016 23,980 Equipment rental 13,952 - - 13,952 Insurance 12,243 3,061 - 15,304 Interest expense 75,649 18,912 - 94,561 Meetings and conferences 5,211 - - 5,211 Miscellaneous 6 - - 6 Postage 1,132 - - 1,132 Prizes and gifts - - - - Professional services 22,406 2,307 - 24,713 Rental expenses 698 2,696 - 3,394 Repairs and maintenance 25,154 6,288 - 31,442 Research projects 39,608 - - 39,608 Restoration projects 937,900 - - 937,900 Scholarships 2,979 - - 2,979 Supplies 3,978 - - 3,978 Taxes - 4,074 - 4,074 Telephone 3,142 - - 3,142 Travel and transportation 3,808 - - 3,808 Utilities 7,348 1,837 - 9,185 Total expenses before depreciation and 1,864,386 105,916 2,016 1,972,318 amortization Depreciation and amortization 57,616 10,167 - 67,783 Total functional expenses $ 1 922 002 $ 116,083 $ 2,016 $ 2,040,101 See the accompanying notes to the financial statements and independent auditor's report. 6 HOOD CANAL SALMON ENHANCEMENT GROUP STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED DECEMBER 31,2018 2018 Program Management Fundraising Total Staff salaries $ 413,518 $ 38,855 $ - $ 452,373 Staff payroll taxes 48,211 5,596 - 53,807 Staff payroll benefits 50,551 12,638 - 63,189 Total salaries and related expenses 512,280 57,089 - 569,369 Advertising 1,619 - - 1,619 Bad Debt 200 - - 200 Bank charges 798 57 - 855 Contract labor 111,056 - - 111,056 Dues, licenses and publications 10,557 - - 10,557 Education and outreach 19,973 - - 19,973 Equipment rental 12,840 - - 12,840 Insurance 16,784 4,196 - 20,980 Interest expense 70,812 17,703 - 88,515 Meetings and conferences 1,239 - - 1,239 Miscellaneous 2,569 - - 2,569 Postage 453 - - 453 Printing and publications 205 - - 205 Prizes and gifts 8,924 226 - 9,150 Professional services - - - - Rental expenses 25 3,515 - 3,540 Repairs and maintenance 13,276 - - 13,276 Research projects 17,960 - - 17,960 Restoration projects 464,284 - - 464,284 Scholarships 11,921 3,750 - 15,671 Supplies 3,883 - - 3,883 Taxes - 344 - 344 Telephone 6,989 - - 6,989 Travel and transportation 2,861 - - 2,861 Utilities 9,630 - - 9,630 Total expenses before depreciation and 1,301,138 86,880 - 1,388,018 amortization Depreciation and amortization 51,378 9,067 - 60,445 Total functional expenses $ 1,352 516 $ 95 947 $ - $ 1,448,463 See the accompanying notes to the financial statements and independent auditor's report. 7 HOOD CANAL SALMON ENHANCEMENT GROUP STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31,2019 AND 2018 2019 2018 Cash flows from operating activities Change in net assets $ 2,899,855 $ 916,814 Adjustments to reconcile the change in net assets to net cash provided by operating activities: Depreciation and amortization 67,783 60,445 Capitalized in-kind contributions (1,761) - Unrealized loss (gain) on investments (9,045) 5,726 Loss (gain) on sale of fixed assets 527 - (Increase)decrease in operating assets: Restricted and reserved cash (23,732) (28,566) Contracts and grants receivable 18,116 (130,475) Costs in excess of billings (142,384) 22,672 Prepaid expenses (8,800) (1,760) Increase (decrease) in operating liabilities: Accounts payable 100,367 136,313 Accrued liabilities 6,564 15,540 Lease deposit - 100 Net cash provided by operating activities 2,907,490 996,809 Cash flows from investing activities Endowment fund investments (2,380) (2,154) Payments for the purchase of property and equipment (2,991,583) (1,021,482) Proceeds from the sale of fixed assets 250 - Appropriations from endowment fund investments - 732 Net cash used by investing activities (2,993,713) (1,022,904) Cash flows from financing activities Proceeds from borrowings 192,157 125,382 Payments on borrowings (116,342) (163,776) Net cash provided (used) by financing activities 75,815 (38,394) Net decrease in cash and cash equivalents (10,408) (64,489) Cash and cash equivalents,beginning of year 29,588 94,077 Cash and cash equivalents, end of year $ 19,180 $ 29,588 Cash paid for interest $ 98,027 $ 82,174 See the accompanying notes to the financial statements and independent auditor's report. 8 HOOD CANAL SALMON ENHANCEMENT GROUP NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2019 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Activities Hood Canal Salmon Enhancement Group (the Organization) is a not-for-profit organization that was formed as a corporation in the State of Washington to protect and enhance the genetic diversity and populations of Wild Salmon (naturally spawning salmon) in Hood Canal by the protection and restoration of habitats, water quality, education, wild salmon incubators and other means to achieve an abundance of Wild Salmon. The Organization also does business under the names: Pacific Northwest Salmon Center and Farm at the Water's Edge. Basis of Accounting The financial statements have been prepared on the accrual basis of accounting in accordance with generally accepted accounting principles. Financial Statement Presentation The Organization follows the recommendations of the Financial Accounting Standards Board in its Accounting Standards Codification (ASC) 958 Not for-Profit Entities. Under ASC 958, the Organization is required to report information regarding its financial position and activities according to two classes of net assets: with donor restrictions, and without donor restrictions. With Donor Restrictions: Net assets that result from contributions whose use by the Organization is restricted by donor imposed stipulations that may expire with the passage of time or can be fulfilled or otherwise removed by actions of the Organization. Without Donor Restrictions: Net assets that are not restricted by donor stipulation. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses in the financial statements. Actual results could differ from management's estimates. Credit Risk The Organization maintains cash balances in one local bank, which is insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. As of December 31, 2019 the Organization's cash balance did not exceed the FDIC limit at its financial institution. 9 HOOD CANAL SALMON ENHANCEMENT GROUP NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2019 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Cash and Cash Equivalents The Organization considers all highly liquid investments with a maturity of ninety days or less to be cash equivalents. Restricted and reserved cash are limited in use, as designated by donors or the reserved intent. These financial instruments are valued at fair market value due to their short-term maturity and low risk nature. Investments Investments in marketable securities with readily determinable fair values and all investments in debt securities are reported at their fair values based on quoted prices in active markets in the statement of financial position. Unrealized gains and losses are included in the change in net assets. Investment income and gains restricted by a donor are reported as increases in unrestricted net assets if the restrictions are met (either by passage of time or by use) in the reporting period in which the income and gains are recognized. Contracts and Grants Receivable Grants and contracts receivable are valued at their net realizable value. The calculation of allowance for doubtful contracts is based on an assessment made by management, which determined which of the outstanding contracts receivable are not expected to be collectible. Fixed and Intangible Assets Fixed and intangible assets are stated at cost for purchased assets and fair market value for donated assets. It is the Organization's policy to capitalize expenditures for these items in excess of $1,000. Lesser amounts are expensed. Donated equipment is recorded at its fair market value at the date of receipt. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets as follows: Buildings and capital improvements 40 years Office furniture and equipment 5 to 7 years Vehicles 5 years Intangible assets 5 to 15 years Revenue Recognition Grant and contract revenues and fees for service are recognized when the service is provided. 10 HOOD CANAL SALMON ENHANCEMENT GROUP NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2019 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Contributions Contributions are recognized when the donor makes a promise to give to the Organization that is, in substance, unconditional. Contributions that are restricted by the donor are reported as increases in net assets without donor restrictions if the restrictions expire in the fiscal year in which the contributions are recognized. All other donor-restricted contributions are reported as increases in net assets with donor restrictions. When a restriction expires, net assets with donor restrictions are reclassified to net assets without donor restrictions. Restrictions on gifts of fixed assets or cash for the purchase of fixed assets expire when the asset is placed in service. Functional Allocation of Expenses The costs of providing various programs and other activities have been summarized on a functional basis in the statement of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited based on the programs and supporting services actual and estimated incurrence of such expenses. Advertising The Organization expenses advertising costs when they are incurred. The total advertising cost incurred during the year ended December 31, 2019 was $2,706. Income Taxes The Organization has been determined to be exempt from federal income taxes under Internal Revenue Code Section 501(c)(3) by the Internal Revenue Service. However, income from certain activities not directly related to the Organization's tax-exempt purpose is subject to taxation as unrelated business income. Interest and penalties from such unrelated business income taxes are recognized as separate expenses when incurred, for which there were none incurred for the year ended December 31, 2019. The Organization believes that it has appropriate support for any tax positions taken, and as such, does not have any uncertain tax positions that are material to the financial statements. The Organization's federal Exempt Organization Business Income Tax Returns for 2017, 2018, and 2019 are subject to examination by the IRS, generally for three years after they were filed. Land Held for Conservation Land held for conservation is recorded at cost when purchased and at fair market value at the date of acquisition, if donated. Management reviews each parcel periodically to determine if there has been an impairment to the value that is recorded in the statement of financial position. 11 HOOD CANAL SALMON ENHANCEMENT GROUP NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Costs in Excess of Billings The Organization receives most of its revenues through contracts and agreements that require billings to be on a reimbursement basis. The costs in excess of billings account allows the Organization to recognize revenues as soon as reimbursable costs are incurred. Subsequent Events The COVID-19 outbreak in the United States has caused business disruption through mandated and voluntary closings of multiple business and nonprofit entities. While the disruption is currently expected to be temporary,there is considerable uncertainty around the duration of the closings. The related financial impact and duration cannot be reasonably estimated at this time. There were no other subsequent events discovered up to November 15, 2020, which is the date the financial statements were available to be issued. NOTE B -RESTRICTED AND RESERVED CASH The Organization receives restricted donations from donors, which are limited for use in programs designated by the donor. The Organization also holds reserved funds related to the repayment of debt and for payments related to the maintenance and repair of its facilities, as required under loan covenants. The balances of restricted and reserved funds as of December 31, 2019 are as follows: 2019 Donor restricted funds Education fund $ 2,500 Restoration fund 2,530 Whittaker cabin rent fund 2,015 Scholarship fund 622 Farm animal fee and care fund 502 Dog park restricted fund 750 Trail project restricted fund 6,193 Founder's restricted fund 30,279 Cutthroat assessment restricted fund 46,134 4-H club fund 502 Amphitheater fund 15,865 Dan O'Neil memorial fund 1,595 Total donor restricted funds 109,487 Board designated reserve funds Facility repairs and maintenance reserve fund 15,890 Total board designated reserve funds 15,890 Total restricted and reserved cash 125,377 12 HOOD CANAL SALMON ENHANCEMENT GROUP NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2019 NOTE C - ENDOWMENT FUND -DONOR DESIGNATED The Board of Directors of the Organization established an endowment fund for the purpose of supporting the scholarship and internship programs. This endowment has been funded with restricted donor contributions. This endowment fund has a spending policy that only appropriates interest and dividends generated by the endowment as well as any capital gains in excess of 7.00%. The endowment fund has an investment policy that restricts the ability to manage the funds to three elected trustees who are members of the Board of Directors of the Organization. Composition of and changes in endowment net assets for the year ended December 31, 2019 were as follows: 2019 Without donor restrictions $With donor restrictions 75,623 Total net endowment assets $ 75,623 Changes in endowment net assets as of December 31, 2019 are as follows: Without Total Net Donor With Donor Endowment Restrictions Restrictions Assets Endowment net assets, as of January 1, 2019 $ - $ 64,198 $ 64,198 Contributions - - - Investment income(loss) - 11,425 11,425 Endowment net assets, as of December 31, 2019 $ - $ 75,623 $ 75,623 Investment income (loss) includes the following: 2019 Dividends and interest earned $ 2,955 Unrealized gain/(loss) 9,045 Realized gain/(loss) 177 Amounts appropriated for expenditures (752) Total $ 11,425 13 HOOD CANAL SALMON ENHANCEMENT GROUP NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2019 NOTE D -FIXED AND INTANGIBLE ASSETS Total depreciation and amortization expense incurred by the Organization for the year ended December 31, 2019 was $65,719 and $2,064, respectively. The Organization's land, works of art, construction in process and certain educational equipment are non-depreciable. The Organization had fixed and intangible assets as of December 31, 2019 that consisted of: 2019 Land $ 6,294,448 Capital improvements 121,127 Buildings 1,766,170 Furniture and equipment 397,384 Vehicles 8,127 Construction in process 36,591 Works of Art 15,400 Intangible assets 14,475 Total fixed and intangible assets 8,653,722 Accumulated depreciation and amortization (735,988) Total fixed and intangible assets, net $ 7,917,734 NOTE E - OPERATING LEASES Non-cancelable lease The Organization entered into a non-cancelable sixty month operating lease for a copy machine in December of 2018. Total rental expense incurred under this lease for the year ended December 31, 2019 was $13,952. The future minimum payments under this lease are listed in the table below. Year Ended December 31, 2020 12,313 2021 12,313 2022 12,313 2023 9,155 Total $ 46,094 NOTE F-REVENUE CONCENTRATIONS The Organization receives substantial support from the State and Federal government to operate various programs. A material reduction in funding or a change in the eligibility to receive such funding could have an adverse impact on the Organization's ability to continue its operations. 14 HOOD CANAL SALMON ENHANCEMENT GROUP NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2019 NOTE G-LONG-TERM DEBT The Organization incurred the following debt as of December 31, 2019: 2019 Secured mortgage with Craft 3 Capital Corporation has a monthly payment of principal and interest of$11,968 and one irregular last payment estimated at $1,049,851, incurs interest at a fixed rate of 8.5%, was entered into on April 1, 2016 and terms were renegotiated on January 3, 2019 by the Organization, and is secured by the first deed of trust on the buildings and property located at 600 NE Roessel Road, Belfair, Washington. 1,108,670 Less current portion of long-term debt (46,277) Total notes payable, net current portion of long term debt $ 1,062,393 Future maturities of debt over the next five years are as follows: Year ended December 31, 2020 46,277 2021 1,062,393 Total $ 1 v108,670 NOTE H- OPERATING LEASE COMMITMENTS The Organization also owns residential property, which it leases to tenants on a month-to-month basis. The tenants, that have occupied the property since it was purchased and have provided rental income during the year ended December 31, 2019, in the amount of$21,700. There was no schedule of future minimum rental receipts prepared, since the tenants are on a month-to-month basis. Leases from two such properties were terminated during the year ended December 31, 2019, but were considered short-term leases to tenants that were vacating a newly acquired conservation property. NOTE I -LIQUIDITY AND AVAILABILITY OF FINANCIAL ASSETS 2019 Financial assets, at year end $ 8,478,667 Less those available for general expenditures within one year due to: Contractual or donor-imposed restrictions: Restricted by donor with time or purpose restrictions (5,646,255) Financial assets available to meet cash needs for general expenditures within one year $ 2,832,412 15 HOOD CANAL SALMON ENHANCEMENT GROUP NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2019 NOTE J-RESTRICTIONS ON NET ASSETS Restrictions on net assets at December 31, 2019 consist of the following: 2019 Without donor restrictions $ 1,323,329 With donor restrictions: Land held for habitat restoration/conservation 5,461,145 Endowment fund 75,623 Donor restricted donations 109,487 Total with donor restrictions 5,646,255 Total net assets $ 6,969,584 The Organization has obtained properties that were either purchased by or donated to the Organization for habitat restoration and/or conservation, but only the use of the property is restricted and not the sale or transfer thereof. The value of these temporarily restricted properties held by the Organization was $5,461,145 as of December 31, 2019. The Organization received restricted donations, which were restricted by the donors for various limited uses and purposes. As of December 31, 2019, the balance of these restricted donations was $109,487 of these restricted donations. The Organization has an endowment fund that is restricted, as noted in Note B - Endowment Fund - Donor Designated. The amount of funds available to fund scholarships as of December 31, 2019 was $30,144. The Organization received $0 in donations deposited into the restricted endowment fund for college scholarships during the year ended December 31, 2019 and the principal balance in this account, which is permanently restricted, was $45,479 as of December 31, 2019. NOTE K- DONATED SERVICES AND MATERIALS The Organization records various types of in-kind contributions. Contributed services are recognized at fair value if the services received (a) create or enhance long-lived assets or (b) require specialized skills, are provided by individuals processing those skills, and would typically need to be purchased if not provided by donation. Contributions of tangible assets are recognized at fair value when received. The amounts reflected in the accompanying financial statements as in-kind contributions are offset by like amounts included in expenses or additions to property and equipment. The Organization received contributed materials during the year ended December 31, 2019, with a fair value on the dates of donation of$2,461. 16 HOOD CANAL SALMON ENHANCEMENT GROUP NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2019 NOTE K-DONATED SERVICES AND MATERIALS (CONTINUED) In addition, a number of volunteers donated a total of 12,636 hours to the Organization's program and support services during the year ended December 31, 2019. These contributions in-kind are not reflected in the financial statements since these services do not meet the criteria for recognition. NOTE L -FAIR VALUE MEASUREMENTS The Financial Accounting Standards Board (FASB) Accounting Standard Codification (ASC) 820-201, establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels: Level 1 inputs consist of unadjusted quoted prices in active markets for identical assets and have the highest priority, Level 2 inputs consist of observable inputs other than quoted prices for identical assets, and Level 3 inputs have the lowest priority. The Organization uses appropriate valuation techniques based on the available inputs to measure fair value of its investment. When available, the Organization measures fair value using Level 1 inputs because they generally provide the most reliable evidence of fair value. Level 2 and 3 inputs are used only when Level 1 inputs are not available. The following table presents the fair value measurements of assets recognized in the accompanying statements of financial position measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2019. Level 1 Level 2 Level 3 Total Investment at Edward Jones $ 75,623 $ - $ - $ 75,623 Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis and recognized in the accompanying statements of financial position, as well as the general classification of such assets pursuant to the valuation hierarchy. Level 1: Quoted market prices in active markets for identical assets and liabilities Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in inactive markets, or other inputs that are observable or can be corroborated by observable market date for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Organization's investments are classified as Level 1. Carrying Value and the Fair Value amounts are the same for the year ended December 31, 2019. 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CO i.. 6A EA 0) C .1-r an 7 o 0 l• M G) 6. os L 00 M O "0 4) 0.. — 00 p O 0) O N ya O cJ O Ew ' o� A L ^ y - y ... V y y 0 64 Q G.,Q 00 O Y 00 0L CA VD c E L 7 on *CI Y 6 —r..>'XI N 0 t p '^ E o0 0, al) 4, W ° o Z O O >, 0. U a4 at R' 5 LE rob z ° g0 a, 0© N Ny U C)COu x N� y r� 0• E EN (C i )) 2 Es U ¢ xwae Q L o0 00 a Q E v v w ,z E „ O i. L V. LO L L N O O R ' = O L O c0 O 10 w V R C C, N O V 0 10 U a.. '° a. 2 O N OO 0 N O 4.-. 0 : c• cGC>O cG co i a h O 0 0 `a E aLi C N re O.Q O E C) E 1 W R Q a. E a_E -'0 HOOD CANAL SALMON ENHANCEMENT GROUP NOTES TO SCHEDULE OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31,2019 NOTE A-BASIS FOR PRESENTATION The accompanying schedule of federal expenditures of federal awards includes the federal grant activity of Hood Canal Salmon Enhancement Group and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in,or used in the preparation of,the basic financial statements. 21 CLARKE WHITNEY, CPA, INC. 610 Warren Avenue Bremerton,WA 98337 CERTIFIED PUBLIC ACCOUNTANTS Phone:360-377-4496 www.clarkewhitney.com Fax: 360-377-4497 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors Hood Canal Salmon Enhancement Group Belfair, Washington We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of Hood Canal Salmon Enhancement Group (a nonprofit organization), which comprise the statement of financial position as of December 31, 2019, and the related statements of activities, functional expenses, and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated November 15,2020. INTERNAL CONTROL OVER FINANCIAL REPORTING In planning and performing our audit of the financial statements, we considered Hood Canal Salmon Enhancement Group's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Hood Canal Salmon Enhancement Group's internal control. Accordingly, we do not express an opinion on the effectiveness of Hood Canal Salmon Enhancement Group's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 22 COMPLIANCE AND OTHER MATTERS As part of obtaining reasonable assurance about whether Hood Canal Salmon Enhancement Group's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. PURPOSE OF THIS REPORT The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Organization's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Organization's internal control and compliance. Accordingly,this communication is not suitable for any other purpose. e eit W ,CIA m . Clarke Whitney, CPA, Inc. Bremerton, WA November 15, 2020 ?.3 CLARKE WHITNEY, CPA, INC. 610 Warren Avenue Bremerton,WA 98337 CERTIFIED PUBLIC ACCOUNTANTS Phone: 360-377-4496 www.clarkewhitney.com Fax: 360-377-4497 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Board of Directors Hood Canal Salmon Enhancement Group Belfair, Washington REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM We have audited Hood Canal Salmon Enhancement Group's compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of Hood Canal Salmon Enhancement Group's major federal programs for the year ended December 31, 2019. Hood Canal Salmon Enhancement Group's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. MANAGEMENT'S RESPONSIBILITY Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. AUDITOR'S RESPONSIBILITY Our responsibility is to express an opinion on compliance for each of Hood Canal Salmon Enhancement Group's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Unifrom Guidance). Those standards and the Unirform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Hood Canal Salmon Enhancement Group's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Hood Canal Salmon Enhancement Group's compliance. 24 OPINION ON EACH MAJOR FEDERAL PROGRAM In our opinion, Hood Canal Salmon Enhancement Group complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2019. REPORT ON INTERNAL CONTROL OVER COMPLIANCE Management of Hood Canal Salmon Enhancement Group is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Hood Canal Salmon Enhancement Group's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Hood Canal Salmon Enhancement Group's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly,this report is not suitable for any other purpose. ebeke. WA*, I C Clarke Whitney, CPA, Inc. Bremerton, WA November 15, 2020 25 HOOD CANAL SALMON ENHANCEMENT GROUP SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31,2019 Section I—Summary of Auditor's Results Financial Statements Type of auditor's report issued : unmodified Internal control over financial reporting: • Material weakness(es) identified? yes X no • Reportable condition(s) identified that are not considered to be material weaknesses? yes X none reported Noncompliance material to financial statements noted? yes X no Federal Awards Internal control over major programs: • Material weakness(es) identified? yes X no • Reportable condition(s) identified that are not considered to be material weakness(es)? yes X none reported Type of auditor's report issued on compliance for major programs : unmodified Any audit findings disclosed that are required to be reported in accordance with OMB Uniform Guidance? yes X no Identification of major programs: CFDA Number(s) Name of Federal Program or Cluster 66.456 Big Beef Creek Estuary Acquisition 15.614 Big Beek Creek Acquisition Dollar threshold used to distinguish between type A and type B programs: $750,000 Auditee qualified as low-risk auditee? yes X no Section II—Financial Statement Findings There were no reportable findings. 26 HOOD CANAL SALMON ENHANCEMENT GROUP SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31,2019 Section III—Federal Award Findings and Questionable Costs There were no reportable findings Section IV—Prior Year Audit Findings There were no prior year audit findings 27 Exhibit D 2021 Conservation Futures Program Manual Big Quilcene River—Moon Valley Acq. 17 October 5, 2022 ...„.$0, ,,„,.. lor .,, jo ,,,,.„,,,,o.„ Jefferson County Conservation Futures Program Manual 2021 Funding Cycle Jefferson County Conservation Futures Program Manual 2021 Funding Cycle Mission of the Conservation Futures Program The mission of the Jefferson County Conservation Futures Program is to provide a system of public open spaces,those open spaces being necessary for the health,welfare, benefit and safety of the residents of Jefferson County and the maintenance of Jefferson County as a desirable place to live,visit and locate businesses. Conservation Futures Citizen's Oversight Committee Membership(as of November 30,2020) Phil Andrus,Citizen,District#2 Mary Biskup, Citizen,District#1 Scott Brinton, Interest—Agriculture Vacant, Citizen,District#3 JD Gallant,Citizen,District#3 Joanne Pontrello,Citizen,District#2 Rob Harbour, Interest—Working Lands Richard Jahnke,Interest—Coastal Areas Craig Schrader,Interest—Climate Change Lorna Smith, Interest—Ecotourism Dave Seabrook, Interest—Food Security Vacant, Interest David Wilkinson, Citizen,District#1 Table of Contents Overview 3 Conservation Futures Citizen Oversight Committee(CF Committee) .4 Project Selection 4 Information Sources 4 Reimbursement ..5 Compliance with All Laws 5 Record Retention 6 Acquisition Projects 6 Operation and Maintenance(O&M) 9 Required Site Visit 11 Required Meeting 11 Annual Reports .11 Project Changes ..12 Program Suggestions 13 Forms and Templates APPENDIX A Project Agreement Template Annual Report Form Template Please note: The 2021 CF Application and Scoresheet are available separately from program staff. Map of Approved Projects APPENDIX B Definitions APPENDIX C 2 2021 CF Program Manual DRAFT http://www.co.j e fferson.wa.u s/560/Conservation-Futures-Program Overview Jefferson County welcomes your application to the Conservation Futures Program(CF Program).Please do not hesitate to contact the program coordinator at Jefferson County Public Health with questions at Ph: 360/379-4498 or tpokorny@co.jefferson.wa.us.The Conservation Futures Program website address is http://www.co jefferson.wa.us/commissioners/Conservation/conservation.asp. In July 2002,the county commissioners approved the Conservation Futures Ordinance,Jefferson County Code Section 3.08,in accordance with the Revised Code of Washington(RCW)Chapter 84.34.The ordinance establishes goals for the county's Conservation Futures Program and an allocation process for the conservation futures tax levy. The purpose of the CF Program is to acquire open space lands,including green spaces,greenbelts,fish and wildlife habitat,trail rights-of-ways,agricultural land and timber land(as those terms are defined in Ch. 84.34 RCW).Projects may include fee-simple or any lesser interest or development right with respect to real property as well as operation and maintenance(0&M)activities. 0&M projects must be linked to a past,or proposed,CF-funded acquisition. A minimum 50%match is required for all project types. Match must be cash,land trades,the value of land to be traded,or other open spaces linked to the property under application. Open space,wildlife habitat,agricultural and timber lands are all eligible.The project sponsor must sign a grant agreement with the county(see Appendix A).County code(JCC 03.08.030(10))requires that properties or easements be held by public entities or others as defined in RCW 84.34.210.Government entities may choose to share title of a property with a non-profit nature conservancy corporation or association.Public open spaces must be available on the same conditions to all residents of the county for the benefit of Jefferson County residents and visitors.Applicants for projects may include the county,municipalities, park districts,state or federal agencies,private non-profit corporations or associations,and private individuals. Project applicants must be represented by a local sponsoring organization based in Jefferson County. Potential sponsors include local governments, special purpose districts and non-profit corporations.A list of potential sponsors is available by contacting program staff.A project sponsor is responsible for the content and submission of the application,organizing and hosting a site visit,making a formal project presentation to the CF Committee,the stewardship plan and its implementation,and all County contracting,reporting,and reimbursement requirements. Available funding is announced early in the calendar year and applications are provided by Jefferson County Public Health.Conservation Futures Fund monies can be the collateral,revenue stream or security for long-term financing(typically bonds)in a manner consistent with law.Public workshop(s)may be held prior to the start of the funding round and are available by request throughout the year.The program coordinator is always available to answer questions from sponsors,applicants,and interested parties. This funding cycle,applications will be due Friday,March 26th,2021 and sponsors host site visits and present projects to the CF Committee later in March and in April. Information about the application period is posted on the program website,announced in local newspapers and via email,and available by contacting the program coordinator. In April or May,the CF Committee meets to rank projects,determine recommended funding levels,and compose its overall recommendations to the Board of County Commissioners(BoCC).The BoCC typically makes award determinations in July.Funding for reimbursement is generally not available until August or later.At least every other year,the BoCC 3 2021 CF Program Manual DRAFT http://www.co.iefferson.wa.us/560/Conservation-Futures-Program reviews the priorities of the Conservation Futures Program and the project ranking process.All meetings of the Conservation Futures Committee are open to the public.Citizens are encouraged to attend. Conservation Futures Citizen Oversight Committee(CF Committee) The CF Committee membership is intended to reflect a broad spectrum of interests and expertise.It includes at least two individuals from each commissioner district and at least nine citizens total.Anyone interested in applying for a seat on the committee is encouraged to contact the Board of County Commissioners Office(jeffbocc@co jefferson.wa.us)and/or the program coordinator at Public Health. Project Selection The CF Committee scores and ranks project applications according to criteria designed to reflect the priorities expressed in the Jefferson County Code Section 03.08.040.This evaluation process has five(5) distinct phases as follows: 1. Written project application:Each CF Committee member(CFCM)independently reads and assesses each application and prepares any necessary clarification questions. 2. Site visits:Each CFCM must attend the project site visits(or view a video of the site visit).Questions may be posed by committee members and answered during this site visit or they may be held until the project presentations meeting. 3. Oral presentation of the project:Each sponsor and CFCM must attend this meeting during which the project sponsor(s)present their project(s)and answer questions posed by the committee members. Following the oral presentations,a deadline will be established for CFCMs to submit additional questions to applicants(via county staff).After this set deadline for additional questions,a second deadline will be established for the receipt of all answers from applicants.After this second deadline no further additional information may be requested,received or considered by the committee. 4. Submission of project score sheets:Each CFCM submits to the program coordinator a form for each project consisting of questions that ask how well,in the committee member's judgement,an applicant meets the criteria for approval and funding.The committee member assigns a numerical"score" (within a range predetermined by the CF Committee)for each of the questions and it is weighted by a predetermined multiplier.Individual scores for each project are recorded in a spreadsheet by the program coordinator.A committee composite"score",for each project application is obtained by taking the average of the"scores".If a project application's composite"score"is 70%of the total possible numerical value for a project"score"or greater,the project is considered worthy of funding (i.e.eligible for).Projects"scoring"below 70%of the total possible numerical value for a project "score"are not considered for funding unless compelling reasons for funding arise in the final evaluation phase. 5. Ranking and recommendation for funding of project applications:Each project application judged eligible in phase#4 is discussed,bringing into focus information garnered from phases 1 through 4 and in light of current funds available to the cycle.All project applications are compared and a final ranking and funding recommendation may be determined for each of the project applications and submitted to the Board of County Commissioners in a memo from the CF Committee chair or vice chair.The Committee will provide justification to the Commissioners for any and all changes from the numerical ranked order. Information Sources The Conservation Futures Program is administered by the Commissioners'Office with assistance from Public Health.Please note that the information contained in this manual does not supersede the statutes 4 2021 CF Program Manual DRAFT http://www.cojefferson.wa.us/560/Conservation-Futures-Program jefferson.wa.us/560/Conservation-Futures-Program governing the Jefferson County Conservation Futures Fund and Program,and should be read in conjunction with them. Relevant sections of law are found in Revised Code of Washington,Chapter 84.34(RCW 84.34) and the Jefferson County Code(JCC 03.08). To access RCW 84.34 online,visit https://app.leg.wa.gov/rcw.The Jefferson County Code is available online at http://www.codepublishing.com/WA/JeffersonCounty. Contact the program coordinator at ph: 360/379-4498,fax: 360/379-4487 or email tpokorny@co.jefferson.wa.us. Reimbursement All grants are funded by the Jefferson County Conservation Futures tax levy.After a public hearing is held,one or more project award resolutions may be passed by the Board of County Commissioners, usually in June or July.Project agreement(s)(Appendix A)between the County and the project sponsor are then developed to include the full scope of work as described in the original or updated application.A final draft grant deed of conservation easement or statutory warranty deed is requested to serve as an attachment to the agreement along with the project application and that year's program manual. Except in the case of escrow payments, sponsors must expend their own funds on eligible and allowable expenditures prior to requesting reimbursement.With sufficient lead time,an approved settlement statement,the qualifying property appraisal,and the required documentation of the matching contribution, CF funds may be made available to the title company shortly before closing for the direct costs of property acquisition.Please discuss dates for closings with the program coordinator to help ensure that grant funds are ready and available when needed. The project sponsor will commit to providing a matching contribution consistent with the project application,and no less than the amount of conservation futures funds awarded to the project,before conservation futures tax funds are reimbursed to that sponsor.This contribution may consist of: • cash • land trades if the valuation of the land to be traded is established by a valuation arising from an appraisal generated by a Washington State Certified Licensed Appraiser(Member of the Appraisal Institute MAI); • the cash value of the land to be traded,excluding Jefferson County conservation futures contributions;or • other open spaces acquired within the previous two years that is situated either directly adjacent to or could,in the sole discretion of the county,be directly linked to the property under application. • cost of appraisal,title insurance,closing costs,and other miscellaneous fees(See JCC 3.08.030(5).) Deeds and conservation easement documents must be recorded by the Jefferson County Auditor's Office within 30 days of closing. If matching funds are not secured within three years,the project may be required to re-apply. 5 2021 CF Program Manual DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program Conservation Futures language pre-approved by Jefferson County is required to be included in conservation easement documents or statutory warranty deeds in order to ensure adequate protections for project and match properties,and the public interest,in perpetuity. Compliance with All Laws Project sponsors shall comply fully with the project agreement,grant program policies,County policies and all applicable federal,state and local laws,orders,regulations and permits. Record Retention/Public Records Act The project sponsor shall retain all books,records,documents,data and other materials relevant to the agreement for a minimum of ten(10)years after the completion of the project.Documents related to the expenditure of CF funds,by way of example only,purchase and sale agreements,settlement documents, invoices,e-mails,expert reports and/or appraisals,are Public Records subject to disclosure in accordance with the Public Records Act,Ch.42.56 RCW,if requested by a citizen or entity.All meetings and activities of the CF Committee are subject to the Open Public Meetings Act,Ch. 42.30 RCW.The public is always invited and encouraged to attend.Two observer comment periods are included in each agenda. Acquisition Projects Project applications for the acquisition of property must meet the following threshold criteria in order to be considered for funding.Each application will receive an initial screening to make sure that it is in compliance.Applicants are encouraged to submit pertinent materials and documents, as appropriate, in addition to those items required.Multi-year acquisition projects are permitted but require additional justification. Project Eligibility Proposed acquisitions must have a willing seller. _ The property,or property right,must be eligible for purchase as defined by state law,RCW 84.34.210(i.e."...protect,preserve,maintain,improve,restore,limit the future use of,or otherwise conserve, selected open space land,farm and agricultural land,and timber land..."). _ Conservation Futures funds cannot be used to acquire property,or a property right,that will be used for active recreation purposes(including but not limited to sports fields,playgrounds, recreation centers,swimming beaches or pools,motorized boat launches). _ Conservation Futures funds cannot be used for passive development of a site.For the purposes of this application,passive improvements include,but are not limited to,trails, interpretive centers,viewpoints,picnic areas,access,restrooms,landscaping and parking. Applicant Eligibility Eligible applicants include the County,municipalities,Park Districts,State or federal agencies, private non-profit corporations or associations,and private individuals. Sponsor Eligibility 6 2021 CF Program Manual DRAFT httv://www.co.iefferson.wa.us/560/Conservation-Futures-Program All applicants must have a local sponsor.Eligible sponsors include county,municipalities,park districts,or private non-profit corporations based in Jefferson County.A current,but not necessarily comprehensive,list of eligible local sponsors may be requested from program staff. Eligible Capital Project Expenditures: (See also JCC 3.080.030(7)) Capital project expenditures or match may include: _Costs of acquiring real property,including interests in real property _Cost of related relocation of eligible occupants(includes administration) _Cost of appraisal _Cost of appraisal review _Cost of title insurance _Closing costs _Pro rata real estate taxes _Recording fees _Compensating tax _Hazardous waste substances reports _Directly related staff and administrative costs(These are limited to 5%of the total cost of the project.) _Related legal costs excluding the cost of preparing application for conservation futures funds. Baseline documentation _Boundary survey Cultural resources review(survey,excavation,on-site monitoring and data recovery) Conservation futures tax levy funds may not be used to acquire any real property or interest in real property therein through the exercise of the power of eminent domain. Stewardship Plan Prior to reimbursement,sponsors must provide a stewardship plan that describes how the property,or property right,will be maintained over time.Costs for stewardship plans are eligible for operations and maintenance reimbursement only under"Special Reports"(not as a capital acquisition expense). Title Report and Title Insurance Please make county staff aware of issues that could affect the title report and provide updates as they are generated.A title report and title insurance are to be issued in conjunction with the property transaction. Appraisals Successful applicants must provide an independent appraisal(standard,narrative or M.A.I.)from a Washington State Certified Licensed Appraiser if the estimate of value exceeds the assessed value at the time that reimbursement is requested. In no case shall conservation futures funds dispersed exceed the grant amount awarded by the BoCC.No appraisal is required for properties assessed at$20,000 or less. The appraisal must: be no more than 1 year old.A Supplemental Update by the original appraiser may be required,at the discretion of the county, if the appraisal is more than six months old. 7 2021 CF Program Manual DRAFT http://www.co.iefferson.wa.us/560/Conservation-Futures-Program _ include a current Title Report provided at the time of the most current appraisal or update. _ if timber,mineral or aquatic resources are to be included as value to the appraisal,then the appraisal shall include a separate timber,mineral or aquatic resources evaluation of value, or _ an opinion of value from a qualified representative of the real estate industry or recent valuation from the Jefferson County Assessor's Office may be used when the total assessed value does not exceed$20,000. Review Appraisals No appraisal review is required of the sponsor by the CF program.However,the CF Committee and/or the county may choose to select an appraisal for independent review for any reason. Project Implementation At the time of purchase or the signing of a"purchase and sale agreement",the appraisal must be no more than a year old unless an extended period is requested and approved by the county,up to a total of 18 months. Application and Attachment Requirements for Acquisition Projects All materials must be submitted electronically as one or more PDF files to tpokorny@co jefferson.wa.us: _ Proof of Willing Seller:A"Willing Seller"letter confirming that the current owner of the property proposed for acquisition is willing to sell. _ Estimate of Value:A county assessment,certified appraisal of value,and/or an estimate of value from the project sponsor. _ Site Location Map:On a Jefferson County base map,or on a map of the sponsoring agency's jurisdictional boundaries,clearly identify the location of the proposed acquisition. Project Boundary Map: On a quarter-section map or other map of sufficiently large scale, identify the boundaries of the proposed project. _ Color Images:Provide six(6)different views of the property proposed for acquisition. The images should show vegetation,terrain,waterfront,man-made features,access roads, wetlands,unique characteristics,etc.Please include captions and an aerial view,if available. Development Plan or Narrative:Provide a schematic or master plan map of the project site showing proposed uses and improvements, if applicable. _ In addition,if the application sponsor is a private non-profit organization,attachments must also include: _Proof of 501(c)(3) Status _Current Budget _Board Roster _Organization Chart or Staff Roster Most Recent Financial Statements(audited if possible) Copy of minutes or resolution documenting official action to submit application for proposed acquisition.If more than one project is submitted from the same sponsor,the minutes or resolution should indicate the project priority and how it was determined. 8 2021 CF Program Manual DRAFT http://www.co.iefferson.wa.us/560/Conservation-Futures-Program Combination Acquisition/0 & M Projects Projects that involve acquisition and 0&M expenses are allowed and require that both sets of application materials be submitted Operations and Maintenance Projects(combination or standalone) Statement of Priority with regard to standalone 0&Mprojects Due to the urgent need to protect farm,forest,habitat,and open space lands,the current priority of the Conservation Futures program is to fund high quality acquisition projects. Operations and Maintenance funding for completed acquisition projects may be approved in exceptional cases,when funding is available. Availability of Funds for 0&M Only projects that are acquired using conservation futures funds are eligible for 0&M funding. Requests for 0&M funding should not exceed the available limit(consult with program staff). Approved disbursements for operation and maintenance of interests in real property purchased with conservation futures tax levy monies shall not in any particular year be greater than fifteen percent (15%)of the conservation futures tax levy monies raised in the preceding year. Project Eligibility Operation and maintenance funding may be used for any property to be acquired,or previously acquired,with Conservation Futures funds.Conservation futures tax levy funds appropriated for 0& M or interests in real property shall not supplant or replace any existing funding for maintenance and operation of parks and recreational lands. Applicant Eligibility Eligible applicants include the County,municipalities,Park Districts,State or federal agencies, private non-profit corporations or associations,and private individuals. Sponsor Eligibility All applicants must have a local sponsor.Eligible sponsors include the County,municipalities,Park Districts,or private non-profit corporations based in Jefferson County. Eligible Operations&Maintenance Expenditures—Please note: (with acquisition request or standalone for past projects)—Please note:Total 0&Mawards are limited to 15%of the revenue to the Conservation Futures Fund in the previous year. Operations&Maintenance expenditures or match may include,but are not limited to: _Cultural resources review(survey,excavation,on-site monitoring and data recovery) _Demolition _Fencing(if needed for public safety or resource protection) _Noxious weed control _Signage 9 2021 CF Program Manual DRAFT http://www.co.iefferson.wa.us/560/Conservation-Futures-Program —Special site-specific reports(e.g.stewardship reports) Wetland identification and/or delineation Application and Attachment Requirements for 0&MProjects All requested materials must accompany the application upon submission.If an item is irrelevant to the project at hand,please explain why this is so. Narrative description of how the requested funds will support specific 0&M activities; what problems or stewardship needs will be addressed by the project;how the proposed 0&M activities will help implement the current Stewardship Plan for the site;probable phasing of project activities;and other information that will help describe the need for and scope of the project. Simple budget describing how requested funds will be used and the source of matching funds. Site Location Map: On a Jefferson County base map,or on a map of the sponsoring agency's jurisdictional boundaries,clearly identify the location of the proposed activities. Project Boundary Map: On a Quarter-section map or other map of sufficiently large scale, identify the boundaries of the proposed project. Color Images:Provide images of portions of the property proposed for 0&M activities. Please include captions,if available. Plan,map,or aerial photo of the project site showing proposed areas of maintenance or improvements, if applicable. Copy of minutes or resolution documenting official action of project sponsor to submit application for project funding.If more than one project is submitted from the same sponsor,the minutes or resolution should indicate the project priority and how it was determined. Documentation of Match A match of 50%must be documented with each invoice.Match guidelines are identical for acquisition and 0&M proposals. In-kind labor cannot be used as match.An expenditure summary that provides the following information must accompany billing: 1)Date the payment was made. 2)The vendor and/or employee to whom the payment was made. 3)A description of what was purchased or what work and/or services were performed;provide a description of what service or work was performed for the payroll costs or by the sub- contractor. Reporting Any project sponsor receiving 0&M funds is required to submit a report each December until those funds are expended. Application and Attachment Requirements for O&M Projects To apply for 0&M funding for a project previously purchased using CF Funds,use the standard application form.In question#1,refer to the original project title and year that the project was 10 2021 CF Program Manual DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Proaram approved followed by"0&M Request Only".If you feel that a question is irrelevant to the project at hand,please answer"N/A". Required Site Visit Project sponsors are asked to host the CF Committee on project site visit(s)and,beforehand,to obtain written permission from the landowner for a county employee to take photographs and make an unrestricted video recording of the project area.These materials are used to inform any CF Committee members not in attendance at the site visit(s)due to health considerations or other needs.The images will be kept on file and discoverable under the Open Public Records Act.If necessary,due to health and safety or other considerations,the project sponsor will arrange for one or two County employees to tape the video in the absence of any CF Committee members. Required Meeting The sponsor must request and reserve the date that the CF Committee will meet to hear project presentations.The sponsor should attend the meeting in person,if possible,and make a presentation that begins with an introductory project description and ideally is organized according to the sequence of questions listed on the Score Sheet. Annual Reports Sponsors are required to submit an annual report by December 31st every year from the date of award until three years after the CF funds are disbursed. Sponsors receiving O&M funds will also submit an annual report for each year that O&M funds are expended.An annual report template is included with this manual and will be provided to the project sponsor electronically. The progress report must address changes in the project focus or purpose,progress in obtaining matching funding,and stewardship and maintenance,as applicable.Project sponsors may demonstrate their long-term stewardship success or management of projects by submitting their site inspection reports annually. Reports At their discretion,sponsors may provide annual reports to the CF Committee based on their own monitoring documents.After five years,if no information is received about a project,the Committee is more likely to request information about long-term monitoring activities. Project Changes Project sponsors are expected to implement funded projects as described in their application to the CFF. However,occasional changes may be necessary.This section describes the process by which a project sponsor can initiate a request for change.A change occurs whenever the language contained in the application to the Conservation Futures Fund no longer accurately or fully describes the project. A proposed project change,such as a cost increase,parcel substitution or removal,or change in funding category(acquisition or 0&M)or match ratio,requires that the CF Committee first develop a recommendation for the BoCC to consider. The Committee prefers that project change requests be presented as follows: 11 2021 CF Program Manual DRAFT http://www.cojefferson.wa.us/560/Conservation-Futures-Program 1. Send a"letter",addressed to the CF Committee and Board of County Commissioners,in an email to the program coordinator describing the desired change(s)and need for it/them in as much detail as possible.Also,characterize the level of urgency for addressing the possible change. If at all possible,provide this information at least two weeks ahead of the next scheduled full committee meeting for possible inclusion on the draft agenda. 2. Reflect the proposed change in a Microsoft Word version of the original conservation futures application,and the County/Sponsor resolution or agreement(as applicable),using Track Changes.Label new attachments with the current date.Attach the document(s)to the email described above. 3. When the change request is included on a draft agenda,the sponsor should make every effort to attend that meeting in person or by phone/internet. 4. If the need for change is urgent,the Chair may call a special,ad hoc,meeting.However, such a meeting requires that a quorum of committee members is available to approve any recommendation to the BoCC. 5. The following requests are considered particularly significant: a. Parcel substitution or removal b. Increase in funding amount c. Reduction in percentage match d. Loss of conservation value e. Change in funding category(acquisition and/or O&M) The CF Committee shall: 1. Review the request for change and ask questions of the project sponsor,as needed. 2. Engage in discussion about the proposed change. 3. Formulate and vote,consistent with the bylaws,on a motion to accomplish one or more of the following: a. Draft a statement to recommend the change for approval by the BoCC in its current form b. Ask the project sponsor to revise and resubmit the change request for a future meeting c. Reject the change and submit a statement to the BoCC to accompany the request Staff shall: 1. Work with the project sponsor and Committee chair to refine or clarify the change request ahead of its presentation at the next Committee meeting,as needed. 2. Forward the change request and Committee recommendations to the BoCC for final determination at a regularly scheduled meeting. 3. Work with the Committee,and subcommittee(s)as applicable,to learn from the change and determine if related updates to program materials are needed. Program Suggestions Suggestions for program improvements are always welcome and may be provided to the Conservation Futures Committee by letter or email via the program coordinator at the contact information on page 3. Every CF Committee meeting also includes two public comment periods.Draft meeting agendas are posted on the program website. 12 2021 CF Program Manual DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program APPENDIX A JEFFERSON COUNTY CONSERVATION FUTURES PROGRAM PROJECT AGREEMENT (informational only) Project Sponsor: Project Title: Project Number: Approval: Resolution No. xxx on xxx, 2021 A. Parties to the Agreement This Project Grant Agreement(Agreement)is entered into between County of Jefferson(County),PO Box 1220,Port Townsend,Washington 98368 and (Sponsor),xxxxx,xxxxx,WA 983xx, and shall be binding upon the agents and all persons acting by or through the parties. B. Purpose of the Agreement This Agreement sets out the terms and conditions by which a grant is made through the Jefferson County Conservation Futures Fund.The grant is administered by Jefferson County Public Health for the Sponsor for the project named above. C. Description of Project The subject project is described in the attached 2021 Conservation Project Application for the xxx. Conservation Futures Fund("CFF")from Jefferson County in an amount not to exceed$xxx will be used towards fee simple acquisition,by xxx,of the real property known in the records of the Jefferson County Assessor as APN#s xxxx for acquisition expenses,and$xxx to reimburse for operations and maintenance expenses.The matching amount is provided by xxx. Description of conservation easement or language in SWD (as applicable). D. Term of Agreement The Project Sponsor's on-going obligation for the above project funded by this Agreement is to provide maintenance of the site or facility to serve the purpose for which it was intended in perpetuity unless otherwise identified in this Agreement. E. Period of Performance The Project reimbursement period for acquisition expenses shall begin on xxxx xx,2019.The Project reimbursement period for acquisition expenses will end on xxx xx,2022 unless proof of match is provided prior to this date.No expenditure made before xxx xx,2019 is eligible for reimbursement unless incorporated by written amendment into this Agreement. F. Project Funding The total grant award provided by the Conservation Futures Fund(CFF)for the Project shall not exceed $xxxxx and Jefferson County CFF shall not pay any amount beyond that approved herein for funding of the Project.The Sponsor shall be responsible for all total costs for the Project that exceed$xxx,xxx. In no event will the CFF funds expended for this purchase exceed xxx percent(xx%)of the overall acquisition cost of APN xxx-xxx-xxx.This Project is eligible for reimbursement of capital project and operations and maintenance expenditures as described in the Jefferson County Conservation Futures Program Manual for the 2019 Funding Cycle. The contribution by the Sponsor toward work on the Project at a minimum shall be as indicated below. The contribution by the County toward work on the Project is described immediately above and in"C"above. 13 2021 CF Program Manual DRAFT http://www.cojefferson.wa.us/560/Conservation-Futures-Program Acquisition 0 & M Totals Conservation Futures— Project Sponsor $ $ o Contribution $ �0 Totals $ $ $ 100% G. Unexpended Project Allocations Should unexpected Project allocations,including,but not limited to project completion at less than the estimated cost or,alternatively,the abandonment of the Project occur,then the Sponsor shall notify the County. H. Rights and Obligations All rights and obligations of the parties to this Agreement are subject to this Agreement and its attachments, including the Sponsor's Application and Jefferson County Conservation Futures Program Manual for the 2019 Funding Cycle,all of which are attached hereto and incorporated herein. Except as provided herein,no alteration of any of the terms or conditions of this Agreement will be effective unless provided in writing.All such alterations,except those concerning the period of performance,must be signed by both parties.Period of performance extensions need only be signed by Jefferson Board of County Commissioners. I. Indemnification Contractor shall indemnify and hold harmless the County,its officers,and employees,from and against all claims,losses or liability,or any portion thereof, including reasonable attorney's fees and costs,arising from injury or death to persons,including injuries,sickness,disease or death to Contractor's own employees,or damage to property occasioned by a negligent act,omission or failure of the Contractor. Contractor shall be liable only to the extent of Contractor's proportional negligence. The Contractor specifically assumes potential liability for actions brought against the County by Contractor's employees, including all other persons engaged in the performance of any work or service required of the Contractor under this Agreement and,solely for the purpose of this indemnification and defense,the Contractor specifically waives any immunity under the state industrial insurance law,Title 51 R.C.W. The Contractor recognizes that this waiver was specifically entered into pursuant to provisions of R.C.W. 4.24.115 and was subject of mutual negotiation. J. Insurance The Sponsor shall secure and maintain in force throughout the duration of this contract policies of insurance as follows If and only if the Sponsor employs any person(s)in the status of employee or employees separate from or in addition to any equity owners,sole proprietor,partners,owners or shareholders of the Sponsor, Worker's Compensation Insurance in an amount or amounts that are not less than the required statutory minimum(s)as established by the State of Washington or the state or province where the Sponsor is located Commercial Automobile Liability Insurance providing bodily injury and property damage liability 14 2021 CF Program Manual DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program coverage for all owned and non-owned vehicles assigned to or used in the performance of the work for a combined single limit of not less than$500,000 each occurrence with the County named as an additional insured in connection with the Sponsor's performance of the contract General Commercial Liability Insurance in an amount not less than a single limit of one million dollars ($1,000,000)per occurrence and an aggregate of not less than two(2)times the occurrence amount ($2,000,000.00 minimum)for bodily injury,including death and property damage,unless a greater amount is specified in the contract specifications.The insurance coverage shall contain no limitations on the scope of the protection provided and include the following minimum coverage a. Broad Form Property Damage,with no employee exclusion; b. Personal Injury Liability,including extended bodily injury c. Broad Form Contractual/Commercial Liability—including completed operations d. Premises—Operations Liability(M&C) e. Independent Contractors and subcontractors; f. Blanket Contractual Liability. Such insurance coverage shall be evidenced by one of the following methods * Certificate of Insurance * Self-insurance through an irrevocable Letter of Credit from a qualified financial institution The County shall be named as an additional insured party under this policy Certificates of coverage as required by this section shall be delivered to the County within fifteen(15) days of execution of this agreement Any deductibles or self-insured retention shall be declared to and approved by the County prior to the approval of the contract by the County.At the option of the County,the insurer shall reduce or eliminate deductibles or self-insured retention or the Sponsor shall procure a bond guaranteeing payment of losses and related investigations,claim administration and defense expenses. The Sponsor shall include all subcontractors as insured under its insurance policies or shall furnish separate certificates and endorsements for each subcontractor.All insurance provisions for subcontractors shall be subject to all of the requirements stated herein. Failure of the Sponsor to take out and/or maintain any required insurance shall not relieve the Sponsor from any liability under the Agreement,nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations concerning indemnification. 15 2021 CF Program Manual DRAFT http://www.cojefferson.wa.us/560/Conservation-Futures-Program It is agreed by the parties that insurers shall have no right of recovery or subrogation against the County (including its employees and other agents and agencies),it being the intention of the parties that the insurance policies so affected shall protect both parties and be primary coverage for any and all losses covered by the above described insurance. It is further agreed by the parties that insurance companies issuing the policy or policies shall have no recourse against the County(including its employees and other agents and agencies)for payment of any premiums or for assessments under any form of policy.It is further agreed by the parties that any and all deductibles in the above described insurance policies shall be assumed by and be at the sole risk of the Sponsor. It is agreed by the parties that judgments for which the County may be liable,in excess of insured amounts provided herein,or any portion thereof,may be withheld from payment due,or to become due, to the Sponsor until such time as the Sponsor shall furnish additional security covering such judgment as may be determined by the County. The County reserves the right to request additional insurance on an individual basis for extra hazardous contracts and specific service agreements. Any coverage for third party liability claims provided to the County by a"Risk Pool"created pursuant to Ch.48.62 RCW shall be non-contributory with respect to any policy of insurance the Sponsor must provide in order to comply with this Agreement. If the proof of insurance or certificate indicating the County is an"additional insured"to a policy obtained by the Sponsor refers to an endorsement(by number or name)but does not provide the full text of that endorsement,then it shall be the obligation of the Sponsor to obtain the full text of that endorsement and forward that full text to the County. The County may,upon the Sponsor's failure to comply with all provisions of this contract relating to insurance,withhold payment or compensation that would otherwise be due to the Sponsor. L. Independent Contractor The Sponsor and the County agree that the Sponsor is an independent contractor with respect to the services provided pursuant to this agreement. Nothing in this agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither Sponsor nor any employee of Sponsor shall be entitled to any benefits accorded County employees by virtue of the services provided under this agreement. The County shall not be responsible for withholding or otherwise deducting federal income tax or social security or for contributing to the state industrial insurance program,otherwise assuming the duties of an employer with respect to Sponsor,or any employee of Sponsor. The Sponsor shall not sublet or assign any of the services covered by this contract without the express written consent of the County or its authorized representative. Assignment does not include printing or other customary reimbursable expenses that may be provided in an agreement. M. Ownership and Use of Documents All documents,drawings,specifications and other materials produced by the Sponsor in connection with the services rendered under this agreement shall be the property of the Sponsor whether the project for which they are made is executed or not.The County shall be permitted to retain copies,including reproducible copies,of drawings and specifications for information,reference and use in connection with the Sponsor's endeavors N. Compliance with Applicable Statutes,Rules,and Jefferson County Policies This Agreement is governed by,and the Sponsor shall comply with,all applicable state and federal laws and regulations,including RCW 84.34.210,and published agency policies,which are incorporated herein by this reference as if fully set forth. 16 2021 CF Program Manual DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program O. Sponsor's Accounting Books and Records The Sponsor shall maintain complete financial records relating to this contract and the services rendered including all books,records,documents,receipts,invoices,and all other evidence of accounting procedures and practices which sufficiently and properly reflect all direct and indirect cost of any nature expended in the performance of this contract.The Sponsor's records and accounts pertaining to this agreement are to be kept available for inspection by representatives of the County and state for a period of ten(10)years after the date of the final payment to Sponsor.Copies shall be made available upon request P. Licensing,Accreditation and Registration The Sponsor shall comply with all applicable local, state and federal licensing,accreditation,permitting and registration requirement/standards necessary for the performance of this contract. Q. Disputes Except as otherwise provided in this contract,when a bona fide dispute arises between Jefferson County and the Sponsor and it cannot be resolved,either party may request a dispute hearing with a mediator assigned by or associated with Jefferson County District Court.Either party's request for a dispute hearing must be in writing and clearly state a. the disputed issue(s), b. the relative positions of the parties,and c. the Sponsor's name,address and Agency contact number These requests must be mailed to the Project Manager,Jefferson County Public Health Department, 615 Sheridan St.,Port Townsend,WA 98368,within fifteen(15)days after either party received notice of the disputed issue(s). The parties agree that this dispute process shall precede any action in a judicial or quasi-judicial tribunal.The parties will split evenly the cost of mediation or whatever form of dispute resolution is used. R. Termination for funding Jefferson County may unilaterally terminate this contract in the event funding from state,federal,or other sources are withdrawn,reduced,or limited in any way after the effective date of this contract. S. Termination for Convenience The County reserves the right to terminate this agreement at any time by giving ten(10)days written notice to the Sponsor T. Assignment The Sponsor shall not sublet or assign any interest in this Agreement,and shall not transfer any interest in this agreement without the express written consent of the County T. NonWaiver. Waiver by the County of any provision of this agreement or any time limitation provided for in this agreement shall not constitute a waiver of any other provision U. County Does Not Assume Additional Duties The County does not assume any obligation or duty,except as required by federal or state law,to determine if Sponsor is complying with all applicable statutes,rules,codes ordinances or permits. 17 2021 CF Program Manual DRAFT httn://www.co.iefferson.wa.us/560/Conservation-Futures-Program V. Agreement Representatives All written communications sent to the Sponsor under this Agreement will be addressed and delivered to: Sponsor Contact Conservation Futures Program Contact Jefferson County Public Health—Conservation Futures 615 Sheridan Street Port Townsend,WA 98368 These addresses shall be effective until receipt by one party from the other of a written notice of any change. W. Entire Agreement/Severability This agreement,along with all attachments,constitutes the entire agreement of the parties.No other understandings,oral or otherwise,regarding this Agreement shall exist or bind any of the parties. If any part of this Agreement is ruled or adjudicated to be unlawful or void,all other sections of this Agreement shall continue to have full force and effect. X. Effective Date This agreement,for the xxxxx(project)shall be effective upon signing by all parties. Y. Venue: Venue for any litigation arising from this Project Agreement shall be only in the Superior Court in and for Jefferson County.Each party to this agreement shall be responsible for their litigation costs,including attorney's fees. DATED this day of 2021. By Kate Dean,Chair Jefferson Board of County Commissioners By Attested: Carolyn Gallaway,Deputy Clerk of the Board Approved as to form: Philip Hunsucker,Chief Civil DPA 18 2021 CF Program Manual DRAFT http://www.co.iefferson.wa.us/560/Conservation-Futures-Program Jefferson County Conservation Futures Program Annual Project Reporting Form(informational only) 1. Project Sponsor: 2. Project Title: 3. Project Number: 4. Status: 5. Approval Date: 6. Project goals and objectives: 7. Parcel number(s): 8. Total acreage: 9. Easement: Title: Seller: 10. Fee Simple Seller: 11. Month and year that CF funding was awarded: 12. a). Purchase price: b). Total project cost: 13. Amount of CF award: 14. Month and year of acquisition: 15. Entity holding title: 16. Entity responsible for stewardship: 17. Plans or agreements pertaining to this acquisition: 18. O& M funds received since acquisition(list by year): 19. Existing and on-going activities and projects(for each 0&M activity that has occurred since December 31 st of the previous year,please provide supporting documentation): 20. New events, activities,projects(for each 0&M activity that has occurred since December 31 St of the previous year,please provide supporting documentation): 21. Needs and challenges: 22. General progress towards project's objectives: Completed by: Title: Organization: Signature Date 19 2021 CF Program Manual DRAFT hun://www.co.iefferson.wa.us/560/Conservation-Futures-Program Appendix B I it Consen alion Futures 1 III IR Jefferson County,Washington . i 1 7.-`;‘-'•r '14-V --,,„ -- ..--• / _ A i p , ---„, - ,,..:,..; ‘ ..... ....... 'C % '.- '''''1 k" 1 — 1 .. ,s, L.\., 7 it. 1 4:114%, ft , ' 1%-.:7 . .."- .411 l'IVL..,. • ''s _ 1"r/ i II = 11 _ . I d" I - - ,• Ili—, . . . .._ , ...f- i t 1..4,.-...., , ••-•;:::-.1- -- .....s_. ----,. ‘ '..---L---- -.• ...., a / - - ' ( 1 I 1-,r % 1 — -- - ,•1-t- - - - • ' '''''''i 141:" ...":74 _ ' ':::-`.7- _+ i -• . I s . rec-- - .- 3—- C3--- MI-———- -- E3--- IM---- - D— CD-- MI— .-. ta .........42. MF Appendix C DEFINITIONS 20 2021 CF Program Manual DRAFT http://www.cojefferson.wa.us/560/Conservation-Futures-Program "Conservation futures citizen oversight committee"means the Jefferson County conservation futures citizen oversight committee established under this chapter. "Conservation futures fund"means the Jefferson County conservation futures fund established under this chapter. "Conservation futures tax levy"means that Jefferson County tax levy upon all taxable property in Jefferson County authorized by RCW 84.34.230. "County"means Jefferson County and/or its conservation futures citizen oversight committee. "Cultural resources"means archeological and historic sites and artifacts, and traditional religious ceremonial and social uses and activities of affected Indian Tribes and mandatory protections of resources under chapters 27.44 and 27.53 RCW."Open space land"means the fee simple or any lesser interest or development right with respect to real property including,but not limited to,conservation futures,easements,covenants or other contractual rights necessary to protect,preserve,maintain,improve,restore,limit the future use of or conserve selected open space land,farm and agricultural land and timber land(as those terms are defined in Chapter 84.34 RCW). "Project"means open space land,or any lesser interest or development right in specific real property,to which Jefferson County conservation futures tax levy funds are allocated for acquisition under the procedure outlined under this chapter. [Ord. 1-14 § 1; Ord.6-02 § 1] "Silviculture"means the practice of controlling the establishment,growth,composition,health,and quality of forests for the production of forest products. 21 2021 CF Program Manual DRAFT http://www.co.iefferson.wa.us/560/Conservation-Futures-Program Exhibit E Resolution No. 51 —21 Resolution No. 36—22 (Amending Resolution#51 —21) Big Quilcene River—Moon Valley Acq. 18 October 5, 2022 L6 3 1_9 -a( STATE OF WASHINGTON County of Jefferson Dedication of Conservation Futures Funds to the } Big Quilcene River—Moon Valley Acquisitions } Project as Authorized by and in Accordance with } RESOLUTION NO. 51 21 Jefferson County Code Section 3.08.030(7)to } Provide a System of Public Open Spaces } WHEREAS, conservation futures tax levy collections, authorized under RCW 84.34.230,are an important means of retaining community character and accomplishing the open space policies and objectives of the Jefferson County Comprehensive Plan that encourage the coordinated acquisition of key open space lands for long-term protection; and WHEREAS, Jefferson County is authorized by RCW 84.34.210 and 84.34.220 to acquire open space land,agricultural and timber lands as defined in RCW 84.34.220; and WHEREAS, the Conservation Futures Citizen Oversight Committee has reviewed project applications for 2021 and made its funding recommendations to the Board of County Commissioners in accordance with Jefferson County Code Chapter 3.08; and WHEREAS, under the provisions of the Jefferson County Conservation Futures Program, Jefferson County,as project sponsor, requests funding towards the acquisition of portions of two parcels of land in S23 T27N R2W with Assessor's Parcel Numbers 702233001 and 702233006; and WHEREAS, the County retains enough developable land to accommodate the Big Quilcene River—Moon Valley Acquisitions project as well as the housing and employment growth that it is expected to receive,thus satisfying the requirements of Chapter 449, Laws of 2005;and WHEREAS, Jefferson County considers it in the best public interest to contribute financially to this open space project. NOW, THEREFORE BE IT RESOLVED that: 1. Jefferson County hereby dedicates up to $89,500 in conservation futures funds in the 2021 funding cycle for acquisition expenses contingent on a matching contribution of at least eighty-nine percent(89%)of the total project cost. Resolution No. 51 21 re: Dedication of Conservation Futures Funds to the Big Quilcene River— Moon Valley Acquisitions project 2. This dedication of funding may be nullified if a submittal for reimbursement, accompanied by documentation of matching funds sufficient to complete the acquisition, is not received from the sponsor within three years of the signing of this resolution. APPROVED AND ADOPTED this / F day of,...)e}1 r/'1 up r- ,2021 in Port Townsend, Washington. SEAL: JEFFERSON COUNTY • BOARD OF COMMISSIONERS 1 _ \ i d r ' f Kate De , Chair ATTEST: eg C i Aea .,,,, rton, Member Carol Gallaway Clerk of the Board • e i Eisen our, Member STATE OF WASHINGTON County of Jefferson Amending Resolution#51 —21, Dedication of } Conservation Futures Funds to the Big Quilcene } River—Moon Valley Acquisitions Project as } RESOLUTION NO.3 6 2 2 Authorized by and in Accordance with Jefferson } County Code Section 3.08.030(7)to Provide a } System of Public Open Spaces } w WHEREAS, on September 7, 2021, Jefferson County dedicated up to $89,500 in conservation futures funds in the 2021 funding cycle for acquisition expenses contingent on a matching contribution of at least eighty-nine percent(89%)of the total project cost; and WHEREAS, on February 23,2022,the project sponsor, the Hood Canal Salmon Enhancement Group(HCSEG), requested to update the project budget because the full matching amount would not be available at the time of property purchase. HSCEG requested to reduce the total project cost to $262,640 from $735,410, the matching contribution to $173,140 from$645,910,the and match percentage to 66% from 89%; and WHEREAS, at their April 5, 2022 special meeting, the Conservation Futures Citizen Oversight Committee approved the request from HCSEG; and WHEREAS, the project deliverables and Conservation Futures award would remain as before; and WHEREAS, JCC 3.08.030(5) states that the project sponsor will commit to providing a matching contribution no less than the amount of conservation futures funds awarded to the project before conservation futures tax funds are reimbursed to that sponsor; and WHEREAS, Jefferson County still considers it in the best public interest to contribute financially to this open space project. NOW, THEREFORE BE IT RESOLVED that: 1. Jefferson County hereby rededicates up to $89,500 in conservation futures funds in the 2021 cycle towards escrow payments and/or reimbursement of eligible acquisition expenses contingent upon presentation of a matching contribution of at least fifty percent (50%). The sponsor anticipates that the matching contribution will total sixty- six percent(66%) at the time of project completion. Resolution No. 36 2 3.e: Amending Resolution#51 —21, Dedication of Conservation Futures Funds to the Big Quilcene River—Moon Valley Acquisitions project 2. This dedication of funding may be nullified if a submittal for reimbursement, accompanied by documentation of matching funds sufficient to complete the acquisition, is not received from the sponsor within three years of the original award, by September 7, 2024. APPROVED AND ADOPTED this 151- 'day of 41.45 0 3 , 2022 in Port Townsend, Washington. SEAL: JEFFERSON COUNTY :,BARD OF COMMISSIONERS w ` ei,• Ei nhour, Chair ATTEST: 1 ;�, ev e,ca reg Brotherton, Member Carolyn(,Gallaway ) Approved Telephonically Clerk of the Board Kate Dean,Member Regular Agenda 615 Sheridan Street Port Townsend, WA 98368 www.JeffersonCountyPublicHealth.org HEARING FORM JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of County Commissioners Mark McCauley, County Administrator FROM: Pinky Mingo,Environmental Public Health and Water Quality Director Tami Pokorny,Natural Resources Program Coordinator DATE: August 1,2022 SUBJECT: Agenda Request: Public Hearing and Possible Decision Regarding Amendments to Conservation Futures Resolutions#51 - 21 for the Hannan Farm Project and#53 -21 for the Big Quilcenc—Moon Valley Project. STATEMENT OF ISSUE: On July 11th, 2022,the BoCC approved a Public Hearing Notice to hold a public hearing on amendments to two Conservation Futures award resolutions on August 151,2022 at 10:45 a.m. The notice was published in the Port Townsend&Jefferson County Leader on July 13th and July 20th, 2022. After the hearing, the BoCC may decide whether or not to amend the existing resolution(s). ANALYSIS/STRATEGIC GOALS: Jefferson County Code(JCC)3.08.030(4) requires a duly noticed public hearing prior to final action by the Board of County Commissioners on the annual allocations from the Conservation Futures Fund (CFF). Resolutions#51-21 and 53-21 were approved on September 7th,2021. The project sponsors have since requested changes to their respective project budget, and the proposed draft resolutions reflect these changes.Contributions from the CFF and project deliverables would remain as before. FISCAL IMPACT: There is no impact to the General Fund or Conservation Futures Fund for approving the resolution amendments. Community Health Environmental Health Developmental Disabilities Water Quality 360-385-9400 360-385-9444 360-385-9401 (I) Always working for a safer and healthier community (f)360-379-4487 RECOMMENDATION: I) Hold a public hearing on August 1si, 2022 at 10:45 a.m.Consider the written and oral testimony at the public hearing and consider approving the enclosed resolution amendments(with or without revisions). REVIEWED BY: VZ, Mark McCaul County Administrator Date Community Health Environmental Public Health Developmental Disabilities Water Quality 360-385-9400 360-385-9444 360-385-9401 (I) Always working for a safer and healthier community (f)360-379-4487 615 Sheridan Street Port Townsend, WA 98368 Nielson www.JeffersonCountyPublicHealth.org Consent Agenda Public Dealt JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of County Commissioners Mark McCauley, County Administrator FROM: Pinky Feria Mingo, Environmental Health and Water Quality Director Tami Pokorny, Natural Resources Program Coordinator DATE: October 17, 2022 SUBJECT: Agenda item — Hood Canal Salmon Enhancement Group: Big Quilcene River— Moon Valley Acquisitions Grant Agreement — September 7, 2021 — September 7, 2024; $89,500 STATEMENT OF ISSUE: Jefferson County Public Health requests approval of the Big Quilcene River— Moon Valley Acquisitions Grant Agreement— September 7, 2021 — September 7, 2024; $89,500. ANALYSIS/STRATEGIC GOALS/PRO'S and CON'S: This project, for Hood Canal Salmon Enhancement Group (HCSEG) to acquire property fee simple as riparian buffer to the Big Quilcene River, was approved for Conservation Futures funds in Resolution #51-21 on September 7, 2021 and amended on August 1, 2022. At its meeting on October 4th, 2022, the Conservation Futures Citizen Oversight Committee confirmed that a request from HCSEG to reduce the total acreage acquired, from 75.1 acres to 50.5 acres, would not significantly impair the conservation value of the project and recommended that the grant agreement and project move forward. FISCAL IMPACT/COST BENEFIT ANALYSIS: Funding for this project is provided by the Conservation Futures Fund, and there is no impact to the County's General Fund. RECOMMENDATION: JCPH Management recommends BoCC signature for the Big Quilcene River — Moon Valley Acquisitions Grant Agreement — September 7, 2021 — September 7, 2024; $89,500. REVIEWED BY: A /0//0/2— ZA Mark McCauley, my Administrator Date Community Health Developmental Disabilities Environmental Public Health 360-385-9400 360-385-9444 360-385-9401 (f) (f) 360-379-4487 Always working for a safer and healthier community EH-22-025 CONTRACT REVIEW FORM Clear Form (INSTRUCTIONS ARE ON THE NEXT PAGE) CONTRACT WITH: Hood Canal Salmon Enhancement Group Contract No: EH-22-025 Contract For: Big Quilcene River- Moon Valley Acq Term: 9/7/2021 -9/7/2024 COUNTY DEPARTMENT: Public Health Contact Person: Tami Pokomy Contact Phone: #498 Contact email: tpokomy©co.jefferson.wa.us AMOUNT: $89,500 PROCESS: _Exempt from Bid Process Revenue: Cooperative Purchase Expenditure: $89,500 Competitive Sealed Bid Matching Funds Required: Small Works Roster Sources(s)of Matching Funds _ Vendor List Bid Fund# 127 .� RFP or RFQ Munis Org/Obj 12756210 Other: APPROVAL STEPS: STEP 1:DEPARTMENT CERTIFIES CO .P CE H .55.080 AND CHAPTER 42.23 RCW. CERTIFIED: ■ N/A: � / October 5,2022 Signature Date STEP 2: DEPARTMENT CERTIFIES THE PERSON PROPOSED FOR CONTRACTING WITH THE COUNTY (CONTRACTOR) HAS NOT B N DEB RRED BY ANY FEDERAL, STATE, OR LOCAL AGENCY. C� CERTIFIED: El N/A: October 5,2022 Signature Date STEP 3: RISK MANAGEMENT REVIEW(will be added electronically through Laserfiche): Electronically approved by Risk Management on 10/5/2022. STEP 4: PROSECUTING ATTORNEY REVIEW(will be added electronically through Laserfiche): Electronically approved as to form by PAO on 10/5/2022. STEP 5: DEPARTMENT MAKES REVISIONS & RESUBMITS TO RISK MANAGEMENT AND PROSECUTING ATTORNEY(IF REQUIRED). STEP 6: CONTRACTOR SIGNS STEP 7: SUBMIT TO BOCC FOR APPROVAL 1